Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an

Question:

Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 ashare. What is the market rate of return?

a) 14.21 percent

b) 13.88 percent

c) 14.03 percent

d) 14.60 percent

e) 14.37 percent

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...