Calculate the Required Rate of Return on DCM Corporation's Stock

question 15

Essay

Calculate the required rate of return on DCM Corporation's stock if its current price is $35 per share,next year's expected dividend is $2.00 per share,its return on equity is 12 percent,and its dividend payout ratio is 55 percent.

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Definitions:

Troposphere

The lowest layer of Earth's atmosphere where weather occurs and where most aviation takes place.

Stratosphere

The layer of the Earth's atmosphere above the troposphere, extending from about 10 to 50 km above the Earth's surface, where ozone is concentrated.

Volatile Organic Compound

Organic chemicals that have a high vapor pressure at ordinary room temperature, causing significant vapor emissions that can affect air quality and human health.

Benzene

A volatile, colorless, and highly flammable liquid hydrocarbon, used as a solvent and in the manufacture of various chemicals, known for its carcinogenic properties.