The common stock of auto deliveries sells for 2596 a share


The common stock of Auto Deliveries sells for $25.96 a share. The stock is expected to pay $2.10 per share next month when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annually and expects to continue doing so. What is the market rate of return on this stock?

12.79 percent

8.09 percent

17.49 percent

10.44 percent

15.14 percent

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Financial Management: The common stock of auto deliveries sells for 2596 a share
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