Answered You can hire a professional tutor to get the answer.

# A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefinitely.

A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefinitely. If the current value of the firm's shares is $35, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)?