Respuesta :
The smith's required return is 17%
What is a company's required return?
A company's required return is the rate of return that investors in its stocks expected to earn from their stock investment.
It is determined as the dividend yield, the return as a result of receiving dividends, plus the growth rate, which is seen as the percentage increase in its share price year-in-year-out.
In essence, the required return is the sum of dividend yield and the growth rate
required return=dividend yield+ growth rate
dividend yield=5%
growth rate=12%
required return=5%+12%
required return=5%+12%
required return=17%
Find out more about required return on:https://brainly.com/question/28104232
#SPJ1
