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Q. Required return on equity?
Required return on equity
Where D1 = Next year's dividend
g = Dividend growth rate
Po = Market price of share
r = Percentage required return
g = 4√ (12/8) - 1
= 0·1067 or 11%
D1 = 12 × 1·11
= 13·32 cents i.e. 13 cents
R = (13/160+ 0.11) × 100
= 19·125%
THDS Brewery is priavet limited company(plc) established according to the Ethiopian commercial code.it is engaged in brewery business
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