Question: Can someone please explain how this is the answer? I've used the expected rate of return equation and got 13.38%.... PLEASE HELPPPPPP (Common stockholder expected

Can someone please explain how this is the answer? I've used the expected rate of return equation and got 13.38%.... PLEASE HELPPPPPP

(Common stockholder expected return) Ziercher executives anticipate a growth rate of 8 percent for the company's common stock. The stock is currently selling for $40.67 per share and pays an end-of-year dividend of $2.19. What is your expected rate of return if you purchase the stock for its current market price of $40.67? Your expected rate of return is 13.83 %. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The case discusses the dilemma of the CFO of PSUWC Energy LLC, an energy generating firm, who needs to present his recommendation to the company Board regarding a proposed investment in a new...

Need help with this assignment.I've attached the excel workbook that should be used to record answers and the case scenario. The case discusses the dilemma of the CFO of PSUWC Energy LLC, an energy...

Need help with these discussion postings (in a document) and assignments (all in separate files), all directions are included as well. FINANCE DIRECTIONS Need to provide 1 original post substantial...

Please respond to discussion board 4 & 5 question that is shown after the discussion board rubric/requirements. Please do not copy/paste from sources. Write in own words and cite where it came from....

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

Explore the differences in the japanese and american investment decision-making processes and the conflicts that arise from there. TOKYO DISNEYLAND AND THE DISNEYSEA PARK: CORPORATE GOVERNANCE AND...

MRKT 310 Principles of Marketing Strategic Marketing & Value for the Customer Please use the service offering below; Lyft PRODUCT CHOICE & CONTENT Your focus will be on the domestic, or U.S....

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Please provide a page and a half paper to answer the following question: Major factors company should be aware of/evaluate regarding future investments projects. Use the attachments to answer the...

HELP!! I don't think the tutor answered did this assignment properly and I am way behind on my other assignments. Can someone please help me? Writea 1,050- to 1,750-word paper in which you address...

What is the purpose of a retirement plan? Why does the government provide tax benefits to retirement plans?

In Paige Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000 is incurred in working 10,400...

An investor holds a Ford bond with a face value of $ 5 , 0 0 0 , a coupon rabe of 8 . 5 % , and semiannual paymerts that matures on danuary 1 5 , 2 acte in 2 0 2 9 ? A . 3 5 , 4 2 5 B . $ 5 . 2 1 2 ....

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

3. A good source for seeing the subtle differences between legal and illegal job interview questions is at the following job Web site: www.jobweb.com/Interview...

6. Conduct an in-depth information-gathering interview, and write a four-to fivepage report in which you summarize the information you received. Then comment on what you learned about the interview...

4. Assess your goals for employment, and then design (or revise) a rsum for the job that interests you the most. Use the guidelines in this chapter to make it clear and action-oriented. Prepare...