Investors expect the dividend to grow at a rate

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The most recent dividend for Verizon's (VZ's) common stock was $2.46/share. (Assume that this dividend was paid just moments ago.) Right after this dividend was paid, the stock was selling for $58.00/share. If investors expect the dividend to grow at a rate of 5.00% per year, infer (i.e., calculate) the overall rate of return that investors are apparently requiring on this VZ stock, as implied by the dividend-growth model.

Reference no: EM132473781

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