The stocks required rate of return is 12 percent if markets


A stock is trading at $70 per share. The stock is expected to have a year-end dividend of $6 per share (D1 = 6), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12 percent. If markets are efficient, what is your forecast of g? Round the answer to the nearest hundredth.

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Finance Basics: The stocks required rate of return is 12 percent if markets
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