Bruer, Inc., is expected to maintain a constant 5.45 percent growth rate in its dividends,...

Question

Bruer, Inc., is expected to maintain a constant 5.45 percent growth rate in its dividends, indefinitely.
If the company has a dividend yield of 3.95 percent, what is the required return on the company’s stock?
Solution:
We know that Dividend yield = 3.95% and Growth rate = 5.45%
Required return...

David · Accepted Answer

Bruer, Inc., is expected to maintain a constant 5.45 percent growth rate in its dividends, indefinitely.
If the company has a dividend yield of 3.95 percent, what is the required return on the company’s stock?
Solution:
We know that Dividend yield = 3.95%  and Growth rate = 5.

Bruer, Inc., is expected to maintain a constant 5.45 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 3.95 percent, what is the required return on the...

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