The next dividend payment by Savitz, Inc., will be $1.80 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $35 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
The next dividend payment by Savitz, Inc., will be $1.80 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $35 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
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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![Problem 8-2 Stock Values [LO1]
The next dividend payment by Savitz, Inc., will be $1.80 per share. The dividends are
anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for
$35 per share, what is the required return? (Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Required return](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35965c83-49a0-4a61-abb5-b01d5b731ec3%2F085dba99-0c12-4890-a077-4d8f90158e53%2Feuwbx2_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 8-2 Stock Values [LO1]
The next dividend payment by Savitz, Inc., will be $1.80 per share. The dividends are
anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for
$35 per share, what is the required return? (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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