Question
A firm pays a $2.50 dividend at the end of year one ( D 1 ), has a stock price of $111 ( P 0
A firm pays a $2.50 dividend at the end of year one (D1), has a stock price of $111 (P0), and a constant growth rate (g) of 12 percent.
| a. | Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) |
| Rate of return | % |
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World Finance Since 1914
Authors: Paul Einzig
1st Edition
0415539471, 978-0415539470
