Universal Forest's current stock price is $154.00 and it is likely to pay a $5.23 dividend next year. Since analysts estimate Universal Forest will have a 13.0 percent growth rate, what is its required return?
14.71 percent
15.28 percent
13.62 percent
16.40 percent

16.40 percent

Step-by-step explanation:

-The growth rate is given by the formula:

Where

is the growth rate

is the required return

is the expected next dividend payout and current share prices respectively.

#We make R the subject of the formula and substitute to solve:

Hence, the required return is 16.40%

hi there!

the answer to this question is d: 35

step-by-step explanation:

5 to the power of 2 is 25

2 multiplied by 5 is 10

then you add the 2 numbers and you get 35