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What is the return on equity

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Reference no: EM131222364

Please answer the following questions:

1. Find the required return for a stock, given that the current dividend is $2.75 per share, the dividend growth rate is 6.5 percent, and the stock price is $105.00 per share.

2. A company has taxable income of $3,200 with a tax rate of 38 percent. Owners equity is: $3400 in stock, $400 in capital surplus, and $100 in retained earnings. What is the return on equity (ROE)?

Reference no: EM131222364

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