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The dividend yield on Alpha's common stock is 5.2 percent. The company just paid a $2.10 dividend. The rumor is that the dividend will be
The dividend yield on Alpha's common stock is 5.2 percent. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.30 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?
Select one:
a. 14.72%
b. 12.31%
c. 18.29%
d. 20.01%
e. 24.21%
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