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Karolina [17]
3 years ago
10

According to the 2018 Value Line Investment Survey, the growth rate in dividends for Ralph Lauren for the next five years will b

e .5 percent. If investors feel this growth rate will continue, what is the required return for the company's stock?
Business
1 answer:
pantera1 [17]3 years ago
4 0

Answer:

Higher than 0.5%

Explanation:

Since the rate of return is calculated as dividend payment/stock price + dividend growth rate and since that growth rate for the next five years will be 0.5 %, than rate of return will be higher than 0.5 %.

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