Tell Me Why Co. is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.8 percent, what is the required return on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Tell Me Why Co. is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.8 percent, what is the required return on the company's stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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![Tell Me Why Co. is expected to maintain
a constant 5 percent growth rate in its
dividends indefinitely. If the company
has a dividend yield of 6.8 percent, what
is the required return on the company's
stock? (Do not round intermediate
calculations. Enter your answer as a
percent rounded to 2 decimal places,
e.g., 32.16.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cf07376-b726-441e-b3d2-ba85772345a9%2F45592f01-5152-4375-a81a-2504d141f8e5%2Fmwtrb39_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tell Me Why Co. is expected to maintain
a constant 5 percent growth rate in its
dividends indefinitely. If the company
has a dividend yield of 6.8 percent, what
is the required return on the company's
stock? (Do not round intermediate
calculations. Enter your answer as a
percent rounded to 2 decimal places,
e.g., 32.16.)
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