Check my work Problem 11-5 Risk Premiums and Discount Rates (LO1) Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $59. The stock will pay a dividend at year-end of $4.00. Assume that risk-free Treasury securities currently offer an interest rate of 1.6%. Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2015 (figures in percent per year) are as Extra return Average Annual folio sury bi11s Treasury bonds S.3 Common stocks What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places) C Prev 10, 10 Next> 3 5 8 0 commandoption