What is the required return


Problem:

The next dividend payment by Mosby, Inc., will be $3.30 per share. The dividends are anticipated to maintain a 2.75 percent growth rate, forever.

Required:

Question: If the stock currently sells for $50.20 per share, what is the required return?

Note: Be sure to show how you arrived at your answer.

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Accounting Basics: What is the required return
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