The required rate of return used in the dividend discount model is affected by a change in the: growth rate of earnings and dividends.
The needed rate of return( RRR) is the minimal quantum of profit( return) an investor will seek or admit for assuming the threat of investing in a stock or another type of security. Rate of return is also used to calculate how profitable a design might be relative to the cost of backing that design.
The rate of return is used to scale the profit or loss of an investment over time. The metric of Rate of return can be used on a variety of means, from stocks to bonds, real castle, and art.
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