Use the dividend growth model to determine the required


Use the dividend growth model to determine the required rate of return for equity. Your firm anticipates paying a divdend of $2.25 per share next year, has a recent price of $40.20 per share, and anticipates a growth rate in dividends of 3.00% per year for the for see able future.

1. 8.44%

2. 8.60%

3. 8.76%

4. There is not enough information to answer this

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Financial Management: Use the dividend growth model to determine the required
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