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Mitchell, Inc., is expected to maintain a constant 4% annual growth rate in its dividends,...

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Accounting

Mitchell, Inc., is expected to maintain a constant 4% annual growth rate in its dividends, indefinitely. If the company has just paid $6 annual dividend and its current price is $105, what comes closest to the required return on the companys stock?

Mitchell, Inc., is expected to maintain a constant 4% annual growth rate in its dividends, indefinitely. If the company has just paid $6 annual dividend and its current price is $105, what comes closest to the required return on the companys stock?

6%

10%

7%

12%

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