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What is the market rate of return on the stock

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Reference no: EM132819763

Problem 1: The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to $2.28 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.15 percent annually and expects to continue doing so. What is the market rate of return on its stock?

a. 7.59 percent

b. 7.43 percent

c. 7.67 percent

d. 7.14 percent

e. 7.28 percent

Reference no: EM132819763

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