Find the expected rate of return for this stock

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Reference no: EM132062572

XYZ common stock is expected to pay a dividend of $2.16 next year, and that dividend grows at a constant rate of 9.3 percent.

If the current price of XYZ common stock is $78.33, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model?

(Show your answer in DECIMAL FORM to three decimals, e.g., 12.3% would be entered as 0.123).

Reference no: EM132062572

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