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A common stock paid a dividend at the end of last year of $3.50. Dividends have grown at a constant rate of 6 percent per
A common stock paid a dividend at the end of last year of $3.50. Dividends have grown at a constant rate of 6 percent per year over the last 20 years, and this constant growth rate is expected to continue into the future. The stock is currently selling at a price of $35 per share. What is the expected rate of return on this stock? Click here for online calculator (Right-click to open in new tab or window). Multiple Choice 18.7% 22.5% 16.6%
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