question archive Cassandra Gas exploration recently paid a $2
Cassandra Gas exploration recently paid a $2
Subject:FinancePrice:1.87 Bought7
Cassandra Gas exploration recently paid a $2.70 annual dividend on its common stock, which is currently selling for $26.91 a share. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the market rate of return?
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13.88 percent |
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14.03 percent |
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14.21 percent |
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14.37 percent |
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14.60 percent |
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Answer
((2.70(1 + .038)) ÷ 2.91) + .038 = .1421, or 14.21%
