How to calculate expected rate of return on a stock
This course reviews methods used to compute the expected return. A financial analyst might look at the percentage return on a stock for the last 10 years and Divide the expected dividend per share by the price per share of the preferred stock. With our example, this would be $12/$200 or .06. Multiply this answer by 100 Calculate expected rate of return given a stock's current dividend, price per share , and growth rate using this online stock investment calculator.