> Stock. What is the growth rate of the stock with a $3.00 expected dividend and a $20.60 price with 15% required return?

Stock. What is the growth rate of the stock with a $3.00 expected dividend and a $20.60 price with 15% required return?

Posted at: 2014-12-05 
of the answers given answered this question or at least I couldn't understand the answers, which is my problem in the class

0.44%

The required gain is $3.09. (20.60*.15)

$3.00 of that is attributable to the dividend, so the required price growth is only $0.09.

$0.09/$20.60 is 0.0044 or 0.44%.

none of the answers given answered this question or at least I couldn't understand the answers, which is my problem in the class