Share price is $150.00, expected dividend is $12.00 one year from now, expected capital gain is 9%, what is the return on equity?

a. Share price is $40.00, expected dividend is $4.50 one year from now, growing there after at a rate of 3% per year in perpetuity. What is the return on equity?

 

b. Expected dividend is $750 one year from now dividend yield is 5% etiim on equity is 14%, what is the share price ?

 

Answer rating: 100% (QA)

To calculate the return on equity ROE we need to consider both the dividend yield and the capit... View the full answer