Question: This is a 2 part question Favorite company is expected to pay dividends of $3 per share NEXT YEAR (Div1). The firms dividends are expected

This is a 2 part question

Favorite company is expected to pay dividends of $3 per share NEXT YEAR (Div1). The firms dividends are expected to grow at a constant rate of 8% per year. The market price of this stock is $120 per share.

What is the expected rate of return on this stock? (state as a percentage and take out to 2 decimal places)

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