Required: Jand, Incorporated, currently pays a dividend of $1.52, which is expected to grow indefinitely at 6%. If the current value of Jand's shares based on the constant-growth dividend discount model is $40.66, what is the required rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Required rate of return 0.10%

Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that…

Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is…

It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normal…

In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.