An analyst gathers the following information about a company's stock:
- Current dividend per share (D₀): $4
- Current EPS: $5
- Dividend growth rate: 4%
If the estimated stock value using the Gordon growth model is $92 per share, the required return on this stock is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
An analyst gathers the following information about a company's stock:
Current dividend per share (D₀): $4
Current EPS: $5
Dividend growth rate: 4%
If the estimated stock value using the Gordon growth model is $92 per share, the required return on this stock is closest to: