Problem:
Guano Industries is currently selling for $79.00. It just paid its annual dividend of $2.00, which have consistently grown at a rate of 2.60%.
Required:
Question: What is the expected return of this stock?
- 5.71%
- 5.60%
- 5.46%
- 4.82%
- 5.20%
Note: Could someone please give me a step by step solution?