Find the required rate for his stock

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Paragon's Historical dividends are shown below. Find the required rate for his stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Assume the January 1, 2011 price of the stock was $36.00. What was the required return for Excellence Inc.’s Stock?

Year              2005                 2006                    2007                    2008                2009              2010

Dividend        $1 . 0 1            $1 . 07               $1 . 1 2                   $1 . 3 1             $1 . 45           $1 . 65

Reference no: EM131517233

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