ABC Inc. has $100,000$ shares outstanding with a total book value of $$987,000$ and which currently sell for $$12\mathrm{.}70$ per share. It had net income of $$124,700$ this past year, of which $$37,000$ was paid in dividends. Based on the above, what rate of return do investors expect on the stock?

Question $11$ Answer

a$.$

$3\mathrm{.}17\%$

b$.$

$7\mathrm{.}62\%$

c$.$

$12\mathrm{.}06\%$

d$.$

$2\mathrm{.}44\%$

e$.$

$14\mathrm{.}11\%$