finance problem need to be done fast

Mar 3rd, 2015
Anonymous
Category:
Accounting
Price: $5 USD

Question description

A firm is expected to pay $2 dividend per share in year 1 (D1=$2) and the dividend is expected to grow at a constant rate of 5%. If the firm's stock price is $28.64 based on the constant growth model, what is the required rate of return on the stock? 

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