The Current Yield on Martin's Mills Common Stock Is 3

question 261

Multiple Choice

The current yield on Martin's Mills common stock is 3.6%. The company just paid a $1.80 dividend and plans to pay $1.86 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?

• A) 3.72%
• B) 4.08%
• C) 5.69%
• D) 6.93%
• E) 7.05%