According to the "bird-in-the-hand" dividend theory,the required return for a stock that pays its entire return from dividends is higher than the required return for a high-growth stock that pays no dividend.

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The "bird-in-the-hand" dividend theory suggests that investors value dividends more than future capital gains because dividends are seen as less risky. Therefore, the required return for a stock that pays dividends might actually be lower than for a high-growth stock that pays no dividend, as investors are willing to accept a lower return for the perceived lower risk.

According to the "Bird-In-The-Hand" Dividend Theory,the Required Return for a Stock