Answered

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you expect a share of econnews to sell for $65 a year from now. if you are willing to pay $62.72 for one share of the stock today, and you expect a dividend payment of $4.00, what rate of return do you require?

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abiolataiwo2015

If you are willing to pay $62.72 for one share of the stock today, and you expect a dividend payment of $4.00, The rate of return do you require is 10%.

How to find the rate of return?

Using this formula to find the rate of return

Required rate of return =[ 1 - ( Sales price of shares + Dividend ) / Stock to day]

Let plug in the formula

Required rate of return =[ 1 -  ( $65 +$4) / $62.72]

Required rate of return =[ 1 - ( $69/$62.72)]

Required rate of return =[ 1 - 1.10]

Required rate of return  = 10%

Therefore the rate of return is 10%.

Learn more about required rate of return here: https://brainly.com/question/24301559

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