Rate of Return Assignment | Homework For You
Mcq answer needed immediately with workings
7.1. Deep River company is expected to pay a dividend of $2.80 next year. Its dividends are expected to grow at a rate of 5%. If the price of the stock is $80, what rate of return is investors demanding?
R = (Di/P0 ) + g = 2.80/80 + .05 = 8.50%
9.62%. Get Finance homework help today