# Question: In Problem 2 assume that the price of the stock

In Problem 2, assume that the price of the stock was $9 and solve for the expected rate of return from buying the stock.

In Problem 2

Assume the next period's dividend is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the retention rate is 50%.

In Problem 2

Assume the next period's dividend is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the retention rate is 50%.

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