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The common stock of ABC Inc. paid $10 dividend last year. Dividends of the company are expected to grow at a 10 percent annual rate
The common stock of ABC Inc. paid $10 dividend last year. Dividends of the company are expected to grow at a 10 percent annual rate indefinitely. Assume that the stock is currently selling for $100 and that your required rate of return is 20 percent. What is the expected rate of return from the ABC common stock to you?
10% |
20% |
21% |
15% |
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