Question: Pear Corp's expected dividend one year from today is $4.5 per share. Investors believe that this dividend will grow at 5% indefinitely. If the stock

Pear Corp's expected dividend one year from today is $4.5 per share. Investors believe that this dividend will grow at 5% indefinitely. If the stock price is trading at $62 per share, then what is the expected return to investors given this information?

9.74%

12.25%

7.35%

9.50%

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