If you purchased 125 shares of common stock that pays an end- of- year dividend of $

Question:

If you purchased 125 shares of that pays an end- of- year of $ 3, what is your expected rate of return if you purchased the stock for $ 30 per share? Assume the stock is expected to have a constant growth rate of 7 percent. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...