Explore BrainMass

Explore BrainMass

    Common stock required rate of return

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 percent. Compute the required rate of return.

    Please show me the formula and steps to solve this problem so I can use it to help me solve other similar problems. Thank you.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:49 pm ad1c9bdddf
    https://brainmass.com/business/business-math/common-stock-required-rate-return-154045

    Solution Summary

    Common stock required rate of return is investigated.

    $2.19

    ADVERTISEMENT