Caccamise Company is expected to maintain a constant 5.9percent growth rate in its dividends, indefinitely. If the companyhas a dividend yield of 4.4 percent, what is the required return onthe company's stock?Note: Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.Required return%

The required return on a stock, often known as the "cost of equity," is the minimal rate of return…

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accamise Company is expected to maint percent growth rate in its dividends, indefinitely. maintain a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Caccamise Company is expected to maintain a constant 5.9
percent growth rate in its dividends, indefinitely. If the company
has a dividend yield of 4.4 percent, what is the required return on
the company's stock?
Note: Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.
Required return
%

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