Tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 6 percent indefinitely. Assuming Tangshan China's most recent dividend was $2.1, what is the required rate of return on Tangshan's stock? a. 8.6% b. 10.6% c. 7.3% d. 9.4%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Tangshan China's stock is currently selling
for $160.00 per share and the firm's
dividends are expected to grow at 6 percent
indefinitely. Assuming Tangshan China's
most recent dividend was $2.1, what is the
required rate of return on Tangshan's stock?
a. 8.6%
b. 10.6%
c. 7.3%
d. 9.4%
Transcribed Image Text:Tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 6 percent indefinitely. Assuming Tangshan China's most recent dividend was $2.1, what is the required rate of return on Tangshan's stock? a. 8.6% b. 10.6% c. 7.3% d. 9.4%
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