Answer:
Expected rate of return =7.1% (Approx.)
Step-by-step explanation:
Given:
Current stock price = $50
Divided d = $2
Growth rate g = 5 %
Find:
Expected rate of return
Computation:
Expected rate of return = D(1+g)/Current Price + g
Expected rate of return = [2(1+5%)/50] + 5%
Expected rate of return =7.1% (Approx.)
Answer:
21 x 3.1 / 2 = 32.55
Step-by-step explanation:
18% of 40 is 7.2
Change the percentage (18%) into a decimal by dividing it over 100:
18/100 = 0.18
Divide 7.2 by the decimal (0.18):
7.2 / 0.18 = 40
