The next dividend payment by DEF, Inc., will be $1.61 per share. The dividends are anticipated to maintain a growth rate of 6.14 percent forever. If the stock currently sells for $28.45 per share, what is the required return (in percent)? Answer to at least three decimals.
The next dividend payment by DEF, Inc., will be $1.61 per share. The dividends are anticipated to maintain a growth rate of 6.14 percent forever. If the stock currently sells for $28.45 per share, what is the required return (in percent)? Answer to at least three decimals.
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
Section: Chapter Questions
Problem 1PS
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![The next dividend payment by DEF, Inc., will be $1.61 per share. The dividends are anticipated to
maintain a growth rate of 6.14 percent forever. If the stock currently sells for $28.45 per share, what
is the required return (in percent)? Answer to at least three decimals.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba41b499-7caa-4d83-a535-62751b0bc506%2F53e19b8c-3553-4673-b76b-c7e52c15bbce%2Fi04pbi.png&w=3840&q=75)
Transcribed Image Text:The next dividend payment by DEF, Inc., will be $1.61 per share. The dividends are anticipated to
maintain a growth rate of 6.14 percent forever. If the stock currently sells for $28.45 per share, what
is the required return (in percent)? Answer to at least three decimals.
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