The Current Price of Zebar Is $32

question 19

Multiple Choice

The current price of Zebar is $32.00 and the current dividend is $0.60. What is an investor's required rate of return on Zebar if dividends are expected to grow perpetually at a compound annual rate of 8 percent?

• A) 9.88%
• B) 11.38%
• C) 18.75%
• D) 10.03%

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