FIN/571 – Siblings, Inc., is expected to maintain a constant 6 percent growth rate

FIN/571 – Siblings, Inc., is expected to maintain a constant 6 percent growth rate

Subject: Business    / Finance
Question

Siblings, Inc., is expected to maintain a constant 6 percent growth rate in its dividends, indefinitely. The company has a dividend yield of 7.8 percent.

What is the required return on the company’s stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)