Explore BrainMass
Share

Calculating Rate of Return on Equity

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

Swamp & Sand's current dividend is $1.6 per share. Analysts expect the firm's growth rate of 2% per year to continue indefinitely. The current stock price is 12.5 . Calculate the required return on equity for this firm.

© BrainMass Inc. brainmass.com September 21, 2018, 12:29 am ad1c9bdddf - https://brainmass.com/business/financial-ratios/calculating-rate-of-return-on-equity-580425

Solution Summary

Shows how to calculate the required rate of return on equity using dividend discount method

$2.19