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AJAX Company paid a dividend today of $4 per share. The dividend is expected to grow at a constant rate of 5% per year. If

AJAX Company paid a dividend today of $4 per share. The dividend is expected to grow at a constant rate of 5% per year. If AJAX Company stock is selling for $56 per share, the stockholders' expected rate of return is

a.) 7.5%

b.) 12.1% c.) 12.5% d.) 5.0%

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