Question: ( Common stockholder expected return ) If you purchased 1 2 5 shares of common stock that pays an end-of-year dividend of $ 2 .

(Common

stockholder expected

return)

If you purchased

125

shares of common stock that pays an end-of-year dividend of

$2.25,

what is your expected rate of return if you purchased the stock for

$28.03

per share? Assume the stock is expected to have a constant growth rate of

percent.

(Common stockholder expected return) If you purchased 125 shares of common stock that pays an end-of-year dividend of $2.25, what is your expected rate of return if you purchased the stock for $28.03 per share? Assume the stock is expected to have a constant growth rate of 8 percent Your expected rate of return is % (Round to two decimal places.)

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