What is the required rate of return

Reference no: EM131956566

Question: Comcast corportation has a serveral catagories of Prefferred and Common Stock. Solve the following questions for either. (1) the value of stock or (2) the yield on stock. List your formula and show your work for credit.

1. Common stock paid a dididend of $4.50 this year. The company expects a growth rate of 9%. The stock currently sells for $53. What is the required rate of return.

2. Common stock will pay a dividend of $4.00 next year. The required rate of return is 9.25%. The stock currently sells for $56. What is the growth rate?

Reference no: EM131956566

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