Falafel Fineries common stock is selling for 40 a share In l

Falafel Fineries\' common stock is selling for $40 a share. In looking at the stream of dividends over the past ten years, you find out that the first dividend was $0.60 and the last dividend was $2.40 What is the stock\'s expected rate of return?

Solution

Expected rate of return = D1/P0

= 2.4/40

Expected rate of return = 6%

 Falafel Fineries\' common stock is selling for $40 a share. In looking at the stream of dividends over the past ten years, you find out that the first dividend

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site