Question: The dividend yield on Alpha's common stock is 5.2%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.3
The dividend yield on Alpha's common stock is 5.2%. The company just paid a $2.10 dividend. The rumor is that the dividend will be $2.3 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock?
| 14.70% | |
| 12.31% | |
| 18.29% | |
| 20.01% | |
| 24.21% **Show work |
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