What Is the Required Return for a Stock That Has

question 18

Multiple Choice

What is the required return for a stock that has a constant-growth rate of 3.3%,a price of $25,an expected dividend of $2.10,and a P/E ratio of 14.4?

• A) 12.40%
• B) 10.92%
• C) 11.70%
• D) 11.26%