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The current stock price of HHBA A is 101.00$. The last dividend payed for HHBA A is 3.50$, and dividends are expected to grow at a constant rate of 6%. Now i should calculate the required return using an asset pricing model. What is it?

1 Answer 1

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Under Dividend Discount Model,

P = D / (r-g)

101.00=3.50/(r-0.06)

r = 0.0946535 = 9.47% = required return

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