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A stock's current price is $58 and you expect the stock to rise to $62 if a dividend increase is announced by the company. Within

A stock's current price is $58 and you expect the stock to rise to $62 if a dividend increase is announced by the company. Within the period, the stock is expected to pay a dividend of $1.50. Calculate your rate of return and your expected dividend yield.

The possible answers for both are

A. 9.48%

B. 6.70%

C. 2.586%

D. None of the above

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