3. The price of NetFlex stock is $54.54; its expected dividend next year is S6, and its constant annual growth rate thereafter is 59%. What is the required rate of retun on the stock? Answer in percent format. Round to the nearest hundredth percent. Do not include the percent sign in your answer. (i.e. If your answer were 1.23%, then type 1.23 without a % sign)

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
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3. The price of NetFlex stock is $54.54; its expected dividend next year is $6, and its constant annual growth
rate thereafter is 5%. What is the required rate of retum on the stock? Answer in percent format. Round to
the nearest hundredth percent. Do not include the percent sign in your answer. (i.e. If your answer were
1.23%, then type 1.23 without a % sign)
Transcribed Image Text:3. The price of NetFlex stock is $54.54; its expected dividend next year is $6, and its constant annual growth rate thereafter is 5%. What is the required rate of retum on the stock? Answer in percent format. Round to the nearest hundredth percent. Do not include the percent sign in your answer. (i.e. If your answer were 1.23%, then type 1.23 without a % sign)
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