Determine what is the required return on the stock

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Reference no: EM132825254

Problem 1: A stock just paid a dividend of $5.13 and is expected to maintain a constant dividend growth rate of 4.1 percent indefinitely. If the current stock price is $71, what is the required return on the stock?

Multiple Choice

Option 1:
11.33%

Option 2:
11.62%

Option 3:
9.91%

Option 4:
10.76%

Option 5:
10.85%

Reference no: EM132825254

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