Consider A Stock That Most Recently Paid A Dividend Of 0

Consider a stock that most recently paid a dividend of $0.75. The company plans to

increase dividends by 50% each year for the next 3 years, then by 20% each year for 4

years, and then level off to a permanent growth rate in dividends of 6%. If the actual stock

price today is $100, what is the implied required rate of return? (Round your answer to

three decimal places and leave in decimal form, e.g. .102).

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!