Thursday
March 30, 2017

Post a New Question

Posted by on .

Royal Cup’s last dividend was $ 1.00 per share and dividends are expected to grow at a rate of 6%. What is the current value of a share of this stock to an investor who requires a 10 percent rate of return?

  • Finance -- incomplete - ,

    That depends upon the price of the stock. A 10% rate of return on a stock selling for $10 would be $1.00. A 10% rate on a stock selling for $100 would $10.

    It also depends upon whether the stock price increases.

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question