The next dividend payment by Swenson,Inc.will be $1.80 per share.The dividends are anticipated to maintain a 5.5 percent growth rate,forever.If the stock currently sells for $48.50 per share,what is the required return?

Name: The next dividend payment by Swenson,Inc.will be $1.80 per share.The dividends are anticipated to maintain a 5.5 percent growth rate,forever.If the stock currently sells for $48.50 per share,what is the required return?
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Quizplus · Accepted Answer

Required return = ($1.80/$48.50) + 0.055 = 9.21 percent

The Next Dividend Payment by Swenson,Inc