Determine the required return on this stock

Reference no: EM1315705

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: EM1315705

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