contestada

If D1 = $1.25, g (which is constant) = 5.5%, and P0 = $44, what is the stock's expected total return for the coming year?

Respuesta :

Stock's expected total return for the coming year is 8.3409%.

What is total stock return?

Total stock return is the overall return from all the income sources in a given period of the time.

Solution is:-   44 = 1.25/(r-5.5%)

                      R= (1.25/44)+5.5%

                      = 8.3409%

8.3409% is the expected stock's total return.

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