The market price for Earnest Corporation common stock is $44 per share. The price at the...
The market price for Earnest Corporation common stock is $44 per share. The price at the end of 1 year is expected to be $49, and dividends for next year should be $1.75. What is the expected rate of return?
Homework Answers
Expected rate of return =End price-beginning price+dividend/beginning price
Expected rate of return =(49-44+1.75)/44
Expected rate of return =15.34%
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