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Expected Rate of Return on a Constant Growth Stock: You buy a stock for $ 2 3 . 5 0 and expect the next annual

Expected Rate of Return on a Constant Growth Stock: You buy a stock for $23.50 and expect the next annual dividend to be $1.10. Furthermore, you expect the dividend to grow at a constant rate of 6%. What is the expected rate of return and dividend yield on the stock? Show the formula.

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