What is expected rate of return

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Reference no: EM131451411

Walter utilities is a dividend-paying company and is expected to pay an annual divident of $2.65 at the end of the year. Itts dividend is expected to grow at a constant rate of 8.00%p per year. If walter's stock currently trades for $21.00 per share, what is the expected rate of return?

a. 9.14%

b. 15.82 %

c. 20.62%

d. 8.12%

Reference no: EM131451411

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