Determining the required return of blue cheese


Problem:

The next dividend payment by Blue Cheese, Inc., will be $1.44 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever.

Required

Question: If the stock currently sells for $26 per share, what is the required return?

Note: Please answer in proper manner and show all computations

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Accounting Basics: Determining the required return of blue cheese
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