7. The company has just paid the last of the four quarterly dividend of $0.80 per share. The market price of the stock is $29.52 and the dividend growth rate is 2.6 percent. Given the market value, what does it imply that the market participants' required return for this company's stock? A) 9.017 percent B) 13.440 percent C) 5.310 percent D) 5.381 percent E) 13.722 percent

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Pls help sir only by formula pls correct 

7. The company has just paid the last of the four quarterly dividend of $0.80 per share. The market
price of the stock is $29.52 and the dividend growth rate is 2.6 percent. Given the market value,
what does it imply that the market participants' required return for this company's stock?
A) 9.017 percent
B) 13.440 percent
C) 5.310 percent
D) 5.381 percent
E) 13.722 percent
H
EBO
Transcribed Image Text:7. The company has just paid the last of the four quarterly dividend of $0.80 per share. The market price of the stock is $29.52 and the dividend growth rate is 2.6 percent. Given the market value, what does it imply that the market participants' required return for this company's stock? A) 9.017 percent B) 13.440 percent C) 5.310 percent D) 5.381 percent E) 13.722 percent H EBO
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