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denis-greek [22]
3 years ago
9

What is the required return for a stock that has a constant-growth rate of 3.3%, a price of $25, an expected dividend of $2.10,

and a P/E ratio of 14.4?
Business
1 answer:
Sav [38]3 years ago
8 0

Answer:

11.7%

Explanation:

The required rate of return = (D1/ / price) + g

The required rate of return = (2.1 / 25) + 0.033

The required rate of return = 0.084 + 0.033

The required rate of return = 0.117

The required rate of return = 11.7%

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Luda [366]

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