ABC will pay a year-end dividend of $2.6 per share. Investors expect the dividend to grow at a rate of 5.6 percent indefinitely. (i) If the stock currently sells for $30 per share, what is the expected rate of return on the stock? (ii) If the expected rate of return on the stock is 15.1 percent, what is the stock price?

Answer rating: 100% (QA)

i Given Dividend 26 per share Stock Price 30 per share Dividend Growt... View the full answer