The next dividend payment by Sterling Co. will be $2.50 per share. The dividends are expected to grow indefinitely at a rate of 4.8%. If Sterling's stock is currently priced at $62.00 per share, what is the required return?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
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Kindly halp me with this question general accounting

The next dividend payment by Sterling Co. will be $2.50 per
share. The dividends are expected to grow indefinitely at a rate
of 4.8%. If Sterling's stock is currently priced at $62.00 per share,
what is the required return?
Transcribed Image Text:The next dividend payment by Sterling Co. will be $2.50 per share. The dividends are expected to grow indefinitely at a rate of 4.8%. If Sterling's stock is currently priced at $62.00 per share, what is the required return?
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