Question: Problem 7 - 1 7 ConstantGrowth Model ( LO 2 ) Eastern Electric currently pays a dividend of $ 1 . 8 6 per share

Problem 7-17 ConstantGrowth Model (LO2)
Eastern Electric currently pays a dividend of $1.86 per share and sells for $33 a share.
a. If investors believe the growth rate of dividends is 2% per year, what rate of return do they expect to earn on the stock?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Rate of return
Problem 7-17 ConstantGrowth Model (LO2) Eastern Electric currently pays a dividend

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