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What is the required rate of return on parker stock

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Reference no: EM132920768

Problem 1: Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent indefinitely. Assuming Parker's most recent dividend was $5.50, what is the required rate of return on Parker's stock?

Answer Choices:

Option 1: 11.34%

Option 2: 8.85%

Option 3: 10.48%

Option 4: 9.15%

Reference no: EM132920768

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