Redan, Inc., is expected to maintain a constant 5.4 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 3.9 percent, what is the required return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Redan, Inc., is expected to maintain a constant 5.4 percent growth rate in its dividends,
indefinitely.
If the company has a dividend yield of 3.9 percent, what is the required return on the
company's stock? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
Required return
%
Transcribed Image Text:Redan, Inc., is expected to maintain a constant 5.4 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 3.9 percent, what is the required return on the company's stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
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