The next dividend payment by Blue Cheese, Inc., will be $1.44 per share. The div
ID: 2701876 • Letter: T
Question
The next dividend payment by Blue Cheese, Inc., will be $1.44 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $26 per share, what is the required return? (Round your answer to 2 decimal places. (e.g., 32.16))
The next dividend payment by Blue Cheese, Inc., will be $1.44 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $26 per share, what is the required return? (Round your answer to 2 decimal places. (e.g., 32.16))
Explanation / Answer
return= (1.44/26)+0.06=0.11538 or 11.54%
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