Rate of return on the stock


Keenan Computer Chips, Inc. is experiencing a period of rapid growth. Earnings and Dividends are expected to grow at a rate of 18 percent during the next 2 years, at 15 percent in the third year, and then at a constant rate of 6 percent thereafter.The firm's last dividend was $1.15, and the required rate of return on the stock is 12 percent.

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Accounting Basics: Rate of return on the stock
Reference No:- TGS0676886

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