Maneesh 03 May 2020 at 12:54 PM

Melta Corporation’s current year earnings are $2.00 per share. Using a discounted cash flow model, the controller determines that Melta’s common stock is worth $14 per share. Assuming a 5% long-term growth rate, Melta’s required rate of return is which one of the following?
A) 7 %
B) 10 %
C) 15 %
D) 20%