Question: I need steps Lisa Simpson is an security analyst at Left-handed Brothers Securities and has develped the following estimates for Doh! Doughnuts common stock which

I need steps I need steps Lisa Simpson is an security analyst at Left-handed

Lisa Simpson is an security analyst at Left-handed Brothers Securities and has develped the following estimates for Doh! Doughnuts common stock which is currently selling for $40 per share. The risk-free rate is 2%, the market risk premium is 8%, and Doh!'s stock has a beta of 1.2 with a current dividend of $1.80 that has an expected constant growth rate of 7.5%. What is Lisa's estimate of the expected return for Doh! Doughnuts' stock? A. 11.2% B. 9.2% C. 7.5% D. 10.0% E. 12.3%

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