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DI=2.10 X 1.05 = 2.205 12-.05 $31.50 2. . 1.75 x 1.05 = 1.8375 + 05 15.50 CURRENT STOCK SELLS AT $15.50 AND CURRENT DIVIDENDS

DI=2.10 X 1.05 = 2.205 12-.05 $31.50 2. . 1.75 x 1.05 = 1.8375 + 05 15.50 CURRENT STOCK SELLS AT $15.50 AND CURRENT DIVIDENDS IS $1.75 AND GROWTH IS 5%. WHAT IS RR? RR = DIVIDEND YIELD + g 11855 +05 = .16855 OR 16.85%

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