Stock. What is the required rate of return on a stock with a
a. $0.5 expected dividend and a 34 price with 7% growth?
b. $0.25 expected dividend and a 15 price with 8% growth?
c. $2.5 expected dividend and a 18 price with 9% growth?
d. $0.25 expected dividend and a 32 price with 10% growth?
SOLUTION PREVIEW
SOLUTION PREVIEW
required rate of return =
(D1/P0) + g
D1 =
|
0.5
|
P0 =
|
34
|
g =
|
7%
|
File name:
15.-Stock.xls
File type:
application/vnd.ms-excel Price: $5