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American Eagle Outfitters (AEO) recently paid a $0.38 dividend. The dividend is expected to grow at a 15.5 percent rate. At the current stock price of $24.07, what is the return shareholders are expecting
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American Eagle Outfitters (AEO) recently paid a $0.38 dividend. The dividend is expected to grow at a 15.5 percent rate. At the current stock price of $24.07, what is the return shareholders are expecting

User Shahriar Nasim Nafi
by
3.2k points

1 Answer

2 votes

Answer:

17.32%

Step-by-step explanation:

Calculation for the return shareholders are expecting

Return shareholders=[ (0.38 x 1.155) / 24.07 ] + .155

Return shareholders=0.01823+.155

Return shareholders= .1732 ×100

Return shareholders= 17.32%

Therefore the return shareholders are expecting

will be 17.32%

User Pleun
by
4.2k points
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