What is the required rate of return for the stock, Finance Basics

What is the required rate of return for the stock

Problem

A company is expected to pay a dividend of $4.50 per share next year (t=1) and the dividend is expected to grow at a constant rate of 6% forever. The stock is currently selling for $50. Given this information, what is the required rate of return for this stock?

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Finance Basics: What is the required rate of return for the stock

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