Question
You have analyzed Stock A and must decide whether to purchase it. Your information is current is dividend is $1.00, expected dividend growth is 5%,
You have analyzed Stock A and must decide whether to purchase it. Your information is current is dividend is $1.00, expected dividend growth is 5%, expected inflation is 3% and the current market price is $20. What is your implied rate of return if you purchase the stock?
- A. 10.00%
- B. 10.25%
- C. 12.00%
- D. none of the above.
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The Oxford Handbook Of Computational Economics And Finance
Authors: Shu-Heng Chen, Mak Kaboudan, Ye-Rong Du
1st Edition
0199844372, 978-0199844371
