intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .) 5 . Siblings , Inc ., is expected to maintain a constant 3.6 percent growth rate in its dividends , indefinitely . The company has a dividend yield of 5.4 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 .)
Required return %
5 . ( Set 2 ) The next dividend payment by ECY , Inc ., will be $ 1.60 per share . The dividends are anticipated to maintain a growth rate of 6 percent , forever . The stock currently sells for $ 30 per share .
What is the required return ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .)
Q-6 ( Set 1 )
Ayden , Inc ., has an issue of preferred stock outstanding that pays a dividend of $ 6.75 every year , in perpetuity . This issue currently sells for $ 93 per share .
What is the required return ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .)
Q-6 ( Set 2 )
6 . The Starr Co . just paid a dividend of $ 1.55 per share on its stock . The dividends are expected to grow at a constant rate of 6 percent per year , indefinitely . Investors require a return of 14 percent on the stock .
What is the current price ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
What will the price be in three years ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)