The Current Yield on Alpha's Common Stock Is 4

question 3

Multiple Choice

The current yield on Alpha's common stock is 4.8%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?

• A) 10.04%
• B) 16.07%
• C) 21.88%
• D) 43.75%
• E) 45.94%

---

Definitions:

Verbal

Pertaining to words or the use of words, often contrasted with non-verbal communication methods such as gestures or facial expressions.

Written Assessment

Formal evaluation methods that require individuals to provide written responses to measure their knowledge, skills, or abilities.

Group Counseling

A form of therapy involving a group of individuals discussing their issues collectively under the guidance of a counselor.

Nutrition Counselor

A health professional specialized in providing advice and guidance on diet, eating habits, and nutritional health.