If the current price of Thaler-Made Furniture is $25 per share and next year's dividend is expected to be $1.75 per share,what is the required return if dividends are expected to grow 5% per year?

Question

Quizplus · Accepted Answer

11ea7fdb_fbf8_c012_a768_0faff7cef39a_TB2902_11 = 11ea7fdb_fbf8_c013_a768_cb04383e22be_TB2902_11 25 = 11ea7fdb_fbf8_c014_a768_afc2acda35f4_TB2902_11 25k - 1.25 = 1.75
25k = 3
k = 12%

If the Current Price of Thaler-Made Furniture Is $25 Per