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expected rate of return

6. Williams & Westrich stock is currently selling for $15.25 per share, and the dividend is expected to continue at 92¢ per share. Management expects the stock to grow at 8%. What is your expected rate of return if you buy the stock for $15.25?
a. 8.00%
b. 6.33%
c. 14.03%
d. 10.42%

Solution Summary

Determine expected rate of return.