What growth rate is expected for the companys stock price

Reference no: EM13263506

The stock price of Russell, Inc. is $81. Investors require a 14 percent rate of return on similar stocks. If the company plans to pay a dividend of $4.20 next year, what growth rate is expected for the company's stock price?

a. 7.99 percent
b. 8.00 percent
c. 8.12 percent
d. 8.37 percent
e. 8.81 percent

Reference no: EM13263506

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