A stock sells for 50 the next dividend will be 5 per share


A stock sells for $50. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 60% of earnings in the firm, what must be the discount rate? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Discount rate %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A stock sells for 50 the next dividend will be 5 per share
Reference No:- TGS02395161

Expected delivery within 24 Hours