Yield on common stock


Question: The current listed price of share a certain common stock is dollar ($) 15. The cash dividend expected from company in one year is $2 per share. All market research indicates that expected constant growth rate in dividends will be 4% per year in future years. Calculate the rate of return on this investment that an investor can expect if shares are purchased at the current listed price?

Request for Solution File

Ask an Expert for Answer!!
Cost Accounting: Yield on common stock
Reference No:- TGS022871

Expected delivery within 24 Hours