Compute the expected rate of return

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Reference no: EM131992637

ABC Corporation stock is currently selling for $54.00. The stock is expected to pay a dividendof $4.25 at the end of the year. Dividends are expected to grow at a constant rate of 6.5% indefinitely. Compute the expected rate of return on ABC Corporation stock. Submit your answer as a percentage and round to two decimal places.

Reference no: EM131992637

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