Implied Required Rate of Return for the Stock Assignment | Homework For You

(1). You believe that a corporation’s dividends will grow 5 percent on average into the future. The corporation just paid a dividend of $5 per share and its stock has a current price of $75. Using the Gordon growth model,
(a) what is the implied required rate of return for the stock?
(b) what is the expected price of the stock in 1 year after the dividend payment)? Get Finance homework help today