Example 2 expected Find the rate of return to the purchaser of a stock if the dividend growth rate is 10%. The current dividend the stock currently trades for $27.50. is $1.25 and (purchase price) N di + g

Example 2 Find the rate of retum to the purchaser of a stok if the dividend qrowth rate is 10%. The current dividend is $1.25 and the stock curvently trades for $27.50. r=pd1+