What is the required rate of return on stock

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1. A stock is expected to pay a dividend of $1.6 at the end of the year. The required rate of return is rs = 12.5%, and the expected constant growth rate is g = 6.9%. What is the stock's current price?

2. The common stock of ABC Industries is valued at $46.7 a share. The company increases their dividend by 7.7 percent annually and expects their next dividend to be $1.1. What is the required rate of return on this stock? That is, solve for r.

Reference no: EM131962451

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