The rate of return required by investors is estimated as:

Name: The rate of return required by investors is estimated as:
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The rate of return required by investors is typically composed of both the dividend yield (the amount of dividends paid out as a percentage of the stock price) and the expected capital gains yield (the expected increase in the stock price over time). Therefore, the rate of return required by investors is estimated as dividend yield plus expected capital gains yield.

The Rate of Return Required by Investors Is Estimated As