What is the estimated required rate of return for equity investors if a stock sells for P40 and will pay a P4.40 dividend that is expected to grow at a constant rate of 5%? A. 7.6% B. 12.0% C. 12.6%       D. 16.0%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 11P
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What is the estimated required rate of return for equity investors if a stock sells for P40 and will pay a P4.40 dividend that is expected to grow at a constant rate of 5%?
A. 7.6%
B. 12.0%
C. 12.6%
 
 
 
D. 16.0%
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