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What is the stocks expected rate of return

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Reference no: EM133002411

Question - The common stock of AMT paid RM1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.

a) If AMT's current market price is RM23.50, what is the stock's expected rate of return?

b) If your required rate of return is 10.5 percent, what is the value of the stock for you?

c) Should you make the investment, and why?

Reference no: EM133002411

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