How to compute required rate of return
Required Rate of Return Formula Step 1: Firstly, the Expected dividend payment is the payment expected to be paid next year. Step 2: Current stock price. If you are using the newly issued common stock, Step 3: The Growth rate of the dividend is the stable dividend rate a company has over a Calculating RRR using CAPM Add the current risk-free rate of return to the beta of the security. Take the market rate of return and subtract the risk-free rate of return. Add the results to achieve