Jenkins Corp. is expected to pay its next dividend of $2.10 per share. The dividends are anticipated to maintain a growth rate of 6.2% forever. If the stock currently sells for $52.75 per share, what is the required return?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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What is the required return on this financial accounting question? Please answer

Jenkins Corp. is expected to pay its next dividend of $2.10
per share. The dividends are anticipated to maintain a
growth rate of 6.2% forever. If the stock currently sells for
$52.75 per share, what is the required return?
Transcribed Image Text:Jenkins Corp. is expected to pay its next dividend of $2.10 per share. The dividends are anticipated to maintain a growth rate of 6.2% forever. If the stock currently sells for $52.75 per share, what is the required return?
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