An Issue of Common Stock Is Selling for $57

question 28

Multiple Choice

An issue of common stock is selling for $57.20. The year-end dividend is expected to be $2.32, assuming a constant growth rate of 4%. What is the required rate of return?

• A) 10.3%
• B) 10.1%
• C) 8.1%
• D) None of these options are correct

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