Required rate of return The price and dividend next year are expected prices,so the required rate of return in any period equals the market capitalization rate,k k= D+P-P R THE COURSE OF FINANCE 2017 SPRING SJTU 14Required rate of return  The price and dividend next year are expected prices, so the required rate of return in any period equals the market capitalization rate, k THE COURSE OF FINANCE 2017 SPRING SJTU 14 0 1 1 0 P D P P k   