What is the required return for a stock that has a constant-growth rate of 3.3%,a price of $25,an expected dividend of $2.10,and a P/E ratio of 14.4?
A) 12.40%
B) 10.92%
C) 11.70%
D) 11.26%

Name: What is the required return for a stock that has a constant-growth rate of 3.3%,a price of $25,an expected dividend of $2.10,and a P/E ratio of 14.4? A) 12.40% B) 10.92% C) 11.70% D) 11.26%
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Question

Quizplus · Accepted Answer

$25 = $2.10/(r − 0.033); r = 11.70%

What Is the Required Return for a Stock That Has