A company has a current stock price of $50 per share and a dividend payout ratio of
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A company has a current stock price of $50 per share and a dividend payout ratio of 40%. The company is expected to pay a dividend of $2 per share next year, and the expected growth rate of the dividend is 5%. What is the expected rate of return on the stock?
Related Book For
Valuation The Art and Science of Corporate Investment Decisions
ISBN: 978-0133479522
3rd edition
Authors: Sheridan Titman, John D. Martin
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