# What is its required rate of return?

Anonymous
account_balance_wallet \$5

### Question Description

Booda Company's stock sells for \$22 per share, its last dividend was \$1.00. and its growth rate is a constant 8%. What is its required rate of return (hint: use the constant dividend growth model to solve for r).?

anusha_reddy
School: Rice University

22 = 1*1.08/(r-8%)

R= 12.91%

required rate of return = 12.91%

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Anonymous
Excellent job

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