Question: Consider a stock that has an expected dividend (D 1 ) = $1.25, a constant dividend growth rate (g) = 5.5%, and a current price

Consider a stock that has an expected dividend (D 1) = $1.25, a constant dividend growth rate (g) = 5.5%, and a current price (P0) = $44. The stock's expected total return for the coming year is closest to:

a.

7.73%
b.

7.93%
c.

8.34%

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