Common Stock question 2

Business & Finance
Tutor: None Selected Time limit: 1 Day

Green company's common stock is currently selling for $75.16 per share. Last year, the company paid dividends of $1.25 per share. The projected growth at a rate of dividends for this stock is 6.24%. Which rate of return does the investor expect to receive on this stock if it is purchased?

Oct 3rd, 2015

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Rate or return = {[$1.25*(1+6.24%)]/$75.16} + 6.24% = 8.00689% or rounded up to 8.01%


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Sep 18th, 2015

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