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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