A stock is expected to maintain a constant dividend growth rate of 4.3 percent indefinitely. if the stock has a dividend yield of 5.6 percent, what is the required return on the stock?

A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
Stocks represent ownership in a publicly traded company. You take a stake in a firm when you purchase its shares. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.
Stocks are not actual assets; they are financial assets. Paper assets that are easily convertible to cash are referred to as financial assets. Real assets have inherent worth because they are tangible.
The required return on the stock=dividend yield + Growth rate
which is equal to' =(4.3+5.6)
=9.9%

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