Question: The answer 19.91 is incorrect . (Common stockholder expected return) If you purchased 200 shares of common stock that pays an end-of-year dividend of $3.50,

The answer 19.91 is incorrect. (Common stockholder expected return) If you

The answer 19.91 is incorrect.

(Common stockholder expected return) If you purchased 200 shares of common stock that pays an end-of-year dividend of $3.50, what is your expected rate of return if you purchased the stock for $29.38 per share? Assume the stock is expected to have a constant growth rate of 8 percent. Your expected rate of return is 19.91 %. (Round to two decimal places.)

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