Last Year, When the Stock of Alpha Minerals Was Selling

question 30

Multiple Choice

Last year, when the stock of Alpha Minerals was selling for $49.50 a share, the dividend yield was 3.4 percent.Today, the stock is selling for $41 a share.What is the total return on this stock if the company maintains a constant dividend growth rate of 2.2 percent?

• A)6.13 percent
• B)6.58 percent
• C)6.40 percent
• D)6.47 percent
• E)6.38 percent