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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
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
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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
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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