question archive Universal Forest's current stock price is $154
Universal Forest's current stock price is $154
Subject:FinancePrice:2.87 Bought7
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?
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Answer :-
Rate of required return = Expected Dividend/Current Stock Price + Growth Rate
= 5.23/154 + 0.13
= 16.39%
