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In: Accounting

What rate of return should an investor expect on a share of stock with a 5 TL expected dividend and 8% growth rate that sells today for 60 TL?

What rate of return should an investor expect on a share of stock with a 5 TL expected dividend and 8% growth rate that sells today for 60 TL?

 

 

Solutions

Expert Solution

Given in the question

Expected dividend = 5TL

Growth rate = 8%

Price of the stock= 60TL

 

Here we will apply the formula given below:

 

Hence the rate of return that an investor should expect on a share of a stock will be 16.33%.

Hence the rate of return that an investor should expect on a share of a stock will be 16.33%.

Hence the rate of return that an investor should expect on a share of a stock will be 16.33%.

Junaid answered 2 years ago
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