A firm pays a $4.90 dividend at the end of year one (D1), has a stock price of $70, and a constant growth rate (g) of 6%. Compute the required rate of return.© BrainMass Inc. brainmass.com June 3, 2020, 8:20 pm ad1c9bdddf
This is a question of Discounted Dividend Model (DDM)
dividend is ...
This solution assists in calculating the rate of return.