Afirm pays a $11.80 dividend at the end of year one (d1), has a stock price of $145, and a constant growth rate (g) of 4 percent. compute the required rate of return (ke). (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)
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Ответ:
The required rate of return is 12.13%
Explanation:
According to the DDM model, the formula for a price of a stock is
P=D1/R-G
D1= Year end dividend
P= Stock price
R= required rate of return
G= Growth rate of stock
SO we will input the values given to us in the question, in this formula.
145=11.80/(R-0.04)
145R - 5.8=11.80
145R= 17.6
R=17.6/145
R=0.121
R= 12.13%
Ответ:
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Explanation:
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