Monday, July 22, 2013

What is the required rate of return on the stock? and Urban Powerlines Stock Background Texture

What is the required rate of return on the stock?



Cartwright Brother's stock is currently selling for $ 40 a share. The stock is expected to pay a $ 2 dividend today. The stock's dividend is expected to grow at a constant rate of 7% per year forever. What is the required rate of return on the stock?


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