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Expected rate of return=(Dividend for next period/Current price)+Growth rate
=(4.6*1.0311)/80.97+0.0311
which is equal to
=8.97%(Approx).
Solution
Expected rate of return=(Dividend for next period/Current price)+Growth rate
=(4.6*1.0311)/80.97+0.0311
which is equal to
=8.97%(Approx).

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Expected rate of return=(Dividend for next periodCurrent price)+Gro.pdf

  • 1. Expected rate of return=(Dividend for next period/Current price)+Growth rate =(4.6*1.0311)/80.97+0.0311 which is equal to =8.97%(Approx). Solution Expected rate of return=(Dividend for next period/Current price)+Growth rate =(4.6*1.0311)/80.97+0.0311 which is equal to =8.97%(Approx).