Janlea Co. had total net earnings of $158,600 this past year and paid out 60 percent of those earnings in dividends. There are 84,000 shares of stock outstanding at a current market price of $18.43 a share. If the dividend growth rate is 2.8 percent.

What is the required rate of return?

Answer rating: 100% (QA)

To compute the expected pace of return we can utilize the Gordon Development Model otherwise cal... View the full answer