Currently the risk-free rate of return is 4 percent and the


High Energy (HE) Company recently paid a $2 per share dividend, which is expected to grow at a constant rate forever. HE's stock, which has a beta coefficient equal to 1.1, is selling for $37.50 per share. Currently, the risk-free rate of return is 4 percent, and the return on an average stock is 10 percent. If HE's stock is selling at its equilibrium price, what is its growth rate?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Currently the risk-free rate of return is 4 percent and the
Reference No:- TGS02191174

Expected delivery within 24 Hours