Ivonne has bought shares of RIO, Inc. stock for $25.00 per share. She expects a 1.00 dividend
Fantastic news! We've Found the answer you've been seeking!
Question:
Ivonne has bought shares of RIO, Inc. stock for $25.00 per share. She expects a 1.00 dividend at the end of this year. After 2 years, she expects to receive a dividend of $1.25 and to sell the stock for $28.75. What is Ivonne's required rate of return?
a. 11.6
b. 11.35
please explain with formula if possible
Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Posted Date: