Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.25 at the end of the year. Its dividend is expected to grow at a constant rate of 6.50% per year. If Walter’s stock currently trades for $20.00 per share, what is the expected rate of return?

Answer rating: 100% (QA)

To calculate the expected rate of return we need to consider both the dividend yiel... View the full answer