Determine the market rate of return


Martha's Vineyard recently paid a $3.60 annual dividend on its common stock. This dividend increases at an average rate of 3.5% per year. The stock is currently selling for $62.10 a share. What is the market rate of return?

A. 2.5%
B. 3.5%
C. 5.5%
D. 6.0%
E. 9.5%

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine the market rate of return
Reference No:- TGS0675471

Now Priced at $5 (50% Discount)

Recommended (99%)

Rated (4.3/5)