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13 You buy a stock for $26.50 and expect the next annual dividend to be $3.50. Furthermore, you expect the dividend to grow at
13 You buy a stock for $26.50 and expect the next annual dividend to be $3.50. Furthermore, you expect the dividend to grow at a constant rate of 3%. a. What is the expected rate of return (r)? (4 pts) b. What is the dividend yield on the stock? (4 pts) c. Show the formulas for calculating the expected rate of return and dividend yield. (2 pts)
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