The next dividend payment by Dizzle, Inc., will be $2.85 per share. The dividends are anticipated to maintain a growth rate of 5

Question

3 years ago

6

.00 percent, forever. If the stock currently sells for $49.30 per share, what is the required return

2 answers:

devlian [24] · Answer 1 · 2022-04-01T11:52:23+03:00

Answer:

10.78%

Explanation:

The next dividend payment for Dizzle incorporation is $2.85

The growth rate is 5%

Current stock price is $49.30

Therefore the required return can be calculated as follows

= dividend payment/stock price + growth rate

= 2.85/49.30 + 5/100

= 0.0578 + 0.05

= 0.1078 × 100

= 10.78%

Mekhanik [1.2K] · Answer 2 · 2022-04-01T14:19:14+03:00

3 0

Answer:b9.89

Explanation:

10-.11=9.89