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Currently a share of stock is paying a dividend(cash payout C ) of $4.00 4.00 to be paid in exactly one year and has a

Currently a share of stock is paying a dividend(cash payout C) of $4.00

4.00 to be paid in exactly one year and has a known selling price in one year (P) of $25.00

25.00. The expected return(R) of similar assets is 8.0

8.0%, and the current market price is$24.00. What is the total rate of return (R*) on thisasset?

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