Evaluate the market rate of return on the stock

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Question: The common stock of Auto Deliveries sells for $25.96 a share. The stock is expected to pay $2.10 per share next month 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?

Reference no: EM131956559

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