The required rate of return = 4.02% (after rounding off)
Explanation:
Required rate of return means the return on the investment that has been made by the equity shareholders of the company. Rate of return is an important factor to know whether the business organization is performing well or not. The rate of return can be calculated by using the return (profit) that has been made.
Required return is calculated by the below mentioned formula:
Expected dividend per share
Price per share
=3.99/99.33
= 0.040169 or 4.02% (rounded off)
