What is the required return on company stock

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Mitchell, Inc., is expected to maintain a constant 5.7 percent growth rate in its dividends, indefinitely.

If the company has a dividend yield of 4.2 percent, what is the required return on the company’s stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Required return ?%

If you want a return of 12 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current stock price            $ ?

Reference no: EM131506475

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