What is expected rate of return

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Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.85 at the end of the year. Its dividend is expected to grow at a constant rate of 7.50% per year. If Walter's stock currently trades at $12.00 per share, what is the expected rate of return? a. 18.42% b. 7.64% c. 8.81% d. 22.92%

Reference no: EM131580949

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