The stockholders expected rate of return

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Reference no: EM13870679

AJAX Company paid a dividend today of $4 per share. The dividend is expected to grow at a constant rate of 5% per year. If AJAX Company stock is selling for $56 per share, the stockholders' expected rate of return is

a) 7.5%

b) 12.1%

c) 12.5%

d) 5.0%

Reference no: EM13870679

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