The common stock of auto deliveries sells for 2696 a share, Ask an Expert

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The common stock of Auto Deliveries sells for $26.96 a share. The stock is expected to pay $1.90 per share next year when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annually and expects to continue doing so. What is the market rate of return on this stock?

7.05 percent

9.40 percent

11.75 percent

14.10 percent

16.45 percent

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91557366

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