What is the expected rate of return for a stock with a current market price of $35, - 4441

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What is the expected rate of return for a stock with a current market price of $35, if the expected dividend at the conclusion of this year is $1.75, and earnings are growing at a 10% annual rate? (Assume that the dividends are anticipated to grow at the same rate.) 

a. 25% 

b. 15% 

c. 10% 

d. 5% 

 

Solution Description

What is the expected rate of return for a stock with a cur