What is the stock expected rate of return

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Green Company's common stock is currently selling at $40.25 per share. The company expects to pay dividends of $2.30 per share next year (D1) and projects dividend growth at a rate of 7%. At this rate, what is the stock's expected rate of return?

12.71%
7.0%
13.11%
5.71%

Reference no: EM131596966

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