GHL stock has a present intrinsic value equal to $500 per share, the company announced a dividend equal to $50 per share

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answerhappygod
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GHL stock has a present intrinsic value equal to $500 per share, the company announced a dividend equal to $50 per share

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GHL stock has a present intrinsic value equalto $500 per share, thecompany announced a dividend equalto $50 per share for the comingyear. GHL expected its dividends to grow ata 6%.
I. Estimate GHL investors’ required rate of return.
II. What will happen to the required rate of return if thegrowth rate is higher. Justify your answer
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