Problem:
Greens companys common stock is currently selling for $66 per share. Last year, the company paid dividends of $3.45 per share The projected growth rate of dividends for this stock is 3.56 percent.
Required:
Question: Which rate of return does the investor expect to receive on this stock if it is purchased today?
- a.5.67 %
- b.8.97%
- c.9.76%
- d.10.97%
Note: Please show how to work it out.