The Current Dividend Yield on Clayton's Metals Common Stock Is

question 117

Multiple Choice

The current dividend yield on Clayton's Metals common stock is 2.5 percent. The company just paid a $1.48 annual dividend and announced plans to pay $1.54 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)6.55 percent
• B)6.82 percent
• C)7.08 percent
• D)7.39 percent
• E)7.75 percent

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