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natulia [17]
2 years ago
5

Mitchell, Inc., is expected to maintain a constant 4.6 percent growth rate in its dividends, indefinitely. If the company has a

dividend yield of 5.8 percent, what is the required return on the company's stock
Business
1 answer:
castortr0y [4]2 years ago
8 0

The required return on the company's stock given the growth rate and the dividend yield is 10.4%.

<h3>What is the required return?</h3>

The required return is the return that investors demand for investing in a stock. The more risky a stock is, the higher the return demanded by investors.

Required return = dividend yield + growth rate

4.6% + 5.8% = 10.40%

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<h3>What are financial statement audits mostly focused on?</h3>
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