Compute the required rate of return

Reference no: EM13276310

A firm will pay a $1.50 dividend at the end of year one (D1), has a stock price of $60 (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 1 decimal place. Omit the "%" sign in your response.) Rate of return % Indicate whether each of the following changes would make the required rate of return (Ke) go up or down.

Reference no: EM13276310

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