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    Calculating Stockholders` Expected Rate of Return

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    Butler Corp paid a dividend today of $3.50 per share. The dividend is expected to grow at a constant rate of 8% per year. If Butler Corp stock is selling for $75.60 per share, the stockholders' expected rate of return is ________.

    a. 12.63%
    b. 12.53%
    c. 13.00%
    d. 14.38%

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    https://brainmass.com/business/accounting-for-corporations/butler-corp-paid-dividend-today-per-share-176204

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    Butler Corp paid a dividend today of $3.50 per share. The ...

    Solution Summary

    This solution provides calculations for expected rate of return.

    $2.19