The next dividend payment by Wyatt, Inc., will be $3.05 per share. The dividends
ID: 2628893 • Letter: T
Question
The next dividend payment by Wyatt, Inc., will be $3.05 per share. The dividends are anticipated to maintain a growth rate of 4.00 percent, forever.
If the stock currently sells for $49.70 per share, what is the required return? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Required:If the stock currently sells for $49.70 per share, what is the required return? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Explanation / Answer
Answer:=
49.70 = 3.05 / (Ke - 0.04)
Therefore, ke= 10.14 %