Required rate of return on the equity investments

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Suppose that the price a stock is bought for is ?$120. Based on the? one-period valuation model of stock? prices, if the stock is sold a year later at the price ?$128 and the required rate of return on the equity investments is 10?%, then the dividend paid out for the stock is ?$______. ?(Round your response to the nearest? penny.)

Suppose that the price a stock was bought for was higher than the one above. Holding every other variable the? same, this implies that the dividend paid out for the stock is ______.

Reference no: EM132245237

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