You expect a share of EconNews.Com to sell for $65 a year from now.If you are willing to pay $62.73 for one share of the stock today, and you expect a dividend payment of $4, what rate of return do you require?

Question

Quizplus · Accepted Answer

The required rate of return can be calculated using the formula: [(Future Price + Dividend - Current Price) / Current Price] * 100. Substituting the given values: [(65 + 4 - 62.73) / 62.73] * 100 = 10%.

You Expect a Share of EconNews