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A firm just paid a dividend of $2 and its current price per share is $50. The growth rate of dividends is constant at 3%.
A firm just paid a dividend of $2 and its current price per share is $50. The growth rate of dividends is constant at 3%. The total return on the stock (dividend yield plus capital gains yield) is _________.
a. 7.12%
b. 3%
c. 7%
d. 4.12%
e. Not enough information
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