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You plan to buy 100 shares of Old Dominga's stock, and you observe the price is $47.77 per share. When the annual dividend is distributed,
You plan to buy 100 shares of Old Dominga's stock, and you observe the price is $47.77 per share. When the annual dividend is distributed, you expect to receive $2.33 per share next year. The company increases its dividends by 1.65 percent per year. What is the market rate of return that you expect to get from this stock?
A. | 7.28 percent | |
B. | 4.84 percent | |
C. | 6.53 percent | |
D. | 7.67 percent | |
E. | 6.41 percent |
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