The cum-dividend share price of VOAG PLC is currently at £3.42. The company has just announced a dividend of 18p which is due to be paid in 1 month. Calculate the required rate of return of shareholders if Investors believe that the dividend next year will be 19p.

a. 8.8%

b. 12.3%

c. 9.7%

d. 10.5%

e. 11.5%

Answer rating: 100% (QA)

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