No, you do not need to add a title to your letter. Simply begin your letter with the inside address, followed by Dear ***: The first line in your letter should say something like, "I am pleased that you have chosen to accept me into your PHD Program. I look forward to being a part of this program .
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ABC Corporation's common stock dividend yield is 3.61%, it just paid a dividend of $2.75, and is expected to pay a dividend of $2.89 one year from now. Dividends are expected to grow at a constant rate indefinitely. What is the required rate of return on ABC stock?
please can anyone explain to me why the answer is 8.7%?