Explore BrainMass
Share

Explore BrainMass

    Stock Dividend

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Medical Equipment Company paid $2.25 common stock dividend last year. The company's policy is to allow its dividend to grow at 5 percent per year indefinitely. What is the required rate of return if value of the stock is 78.75?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:18 am ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/common-stock-dividend-rate-return-dividend-286328

    Solution Preview

    The Medical Equipment Company paid $2.25 common stock dividend last year. The company's policy is to allow ...

    Solution Summary

    The response helps in estimating Stock Dividend.

    $2.19