question archive Butler Corp paid a dividend today of $5 per share
Butler Corp paid a dividend today of $5 per share
Subject:AccountingPrice:2.87 Bought7
Butler Corp paid a dividend today of $5 per share. The dividend is expected to grow at a constant rate of 6.5% per year. If Butler Corp stock is selling for $50.00 per share, the stockholders' expected rate of return is?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
50 = 5/(r-0.065)
r = .1+0.065 = 0.165
expected return = 16.5%
