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Can someone please explain how this is the answer? I've used the expected rate of return equation and got 13.38%.... PLEASE HELPPPPPP (Common stockholder expected
Can someone please explain how this is the answer? I've used the expected rate of return equation and got 13.38%.... PLEASE HELPPPPPP
(Common stockholder expected return) Ziercher executives anticipate a growth rate of 8 percent for the company's common stock. The stock is currently selling for $40.67 per share and pays an end-of-year dividend of $2.19. What is your expected rate of return if you purchase the stock for its current market price of $40.67? Your expected rate of return is 13.83 %. (Round to two decimal places.)Step by Step Solution
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