What is required rate of return on equity

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Reference no: EM131987342

1. Suppose Ningbo Steel had sales revenue of $10,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was: $1,200 $1,000 $800 $400

2. ABC Inc.'s stock is currently selling for $46.52 per share. The company just paid its first annual dividend of $4.05 a share. The firm plans to increase the dividend by 6.7 percent per year indefinitely. What is the required rate of return on equity?

Reference no: EM131987342

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