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S Co's stock is selling for $100 per share today. The stock will pay a dividend of $ 5 per share, and then be sold for $120 per share at end of year. Calculate the expected rate of return for the shareholders.

Calculate the expected rate of return for the shareholders.

 

A) Ten %    

B)  Fifteen%    

C) Twenty %    

D)  Twenty Five%

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2016/04/26
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option D is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

D)  Twenty Five% is the answer.

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