Question 8 Finance

(Common zookholder expected return) Zeecher executives anticipase a growen rate of 7 percent for the compary's common slock. The stock is cureney soling for $43. 25 per shuve and pays an end-ol-yeer dividend of $1.75. What is your expected tate of return it you purchase the siock for its current manef price of $43.25 ? Your expecled rate of retum is 6. (Round to tao decinal places)