- 8 Consider A Perfect Capital Market Under Certainty Of Company A The Following Is Known A Price Per Share At T 0 45 0 1 (66.51 KiB) Viewed 27 times
8 Consider a perfect capital market under certainty. Of company A the following is known: A Price per share at t=0 €45.0 Earnings per share att = 1 (EPS) €12.0 Growth rate earnings (g) (constant) 2.096 Dividend pay-out ratio (k) (constant) 25.096 For this stock, the required rate of return (r), the pay-out ratio (k) and the annual growth rate of the earnings per share (g) are all constant. 1.0p What is the required rate of return (r)? Round your answer to two decimals (e.g, enter 12.34567% as 12.35) 3 Answer