What is the stockholder expected rate of return

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XYZ Corp. just paid a dividend today of $6.25 per share. The dividend is expected to grow at a constant rate of 5.5% per year. If XYZ Corp. stock is selling for $40.00 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places.

Reference no: EM131890823

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