What is the required rate of return on a stock with $2.5 expected dividend and a $19 price with a 7% growth?
I calculated by R=D/P-G and got 13% but the answer is 20.16% How is the answer 20.16%?
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What is the required rate of return on a stock with $2.5 expected dividend and a $19 price with a 7% growth?
I calculated by R=D/P-G and got 13% but the answer is 20.16% How is the answer 20.16%?
Solving for r the growth model is
r =+ g
Give that one a spin and you'll get it.
Got it thanks!
Stock has a beta of 1.2. risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the stock
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