The common stock of Martin Co. is selling for $34.94 per share. The stock recently paid dividends of $1.25 per share a...
The common stock of Martin Co. is selling for $34.94 per share. The stock recently paid dividends of $1.25 per share and has a projected constant growth rate of 9.9 percent. If you purchase the stock at the market price, what is your expected rate of return? Your expected rate of return is _____%.
Homework Answers
expected rate of return=(D1/Current price)+Growth rate
=(1.25*1.099)/34.94+0.099
which is equal to
=13.83%(Approx).
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