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

question 63

Multiple Choice

The current dividend yield on Clayton's Metals common stock is 3.2 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)7.25 percent
• B)7.82 percent
• C)8.08 percent
• D)8.39 percent
• E)8.75 percent