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Problem:

Guano Industries is currently selling for $79.00. It just paid its annual dividend of $2.00, which have consistently grown at a rate of 2.60%.

Required:

Question: What is the expected return of this stock?

  • 5.71%
  • 5.60%
  • 5.46%
  • 4.82%
  • 5.20%

Note: Could someone please give me a step by step solution?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174360

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