How to compute the required rate of return


A firm will pay a $1.50 dividend at the end of year one (D1), has a stock price of $65 (P0), and a constant growth rate (g) of 8 percent. (a) Compute the required rate of return (Ke). (Round your intermediate and final answer to 2 decimal places. Omit the "%" sign in your response.) Find the Rate of return ___%

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Accounting Basics: How to compute the required rate of return
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