Calculation of current required return on the stock1 stock

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Calculation of current required return on the stock.

1) Stock at ABC co sold last year at $48per share and dividends paid we're 4.5%.  Today this stock sells at $46per share. What is the current required return on this stock if the Co maintains a constant dividend growth rate of 3%?

2)  Abc co stock is valued at $51.40per share. The Co pays a constant dividend of $3.80.  What is the required return on this stock?

Reference no: EM13356796

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