Suppose you're considering buying a stock that is expected to pay a dividend of $1.25 per share,

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Suppose you're considering buying a stock that is expected to pay a dividend of $1.25 per share, per year. If the stock is selling for $8.68, what is the appropriate rate of return on this stock?

a. 12.11%

b. 13.67%

c. 14.40%

d. 15.70%

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