Compost Inc. (CI) has a 8% return on equity, a reinvestment ratio of 70% and is expected to pay a $7 dividend. Suppose that the business is growing at 2% per year, and the price per share is $180. What is the expected rate of return from purchasing this stock?

Answer rating: 100% (QA)

To calculate the expected rate of return from purchasing the stock of Compost Inc CI we can use the ... View the full answer