What overall rate of return is market expecting on stock

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Reference no: EM131822477

The most recent dividend for Verizon’s (VZ’s) common stock was $2.31/share. As of early September, the stock was selling for $46.20/share. If investors expect the dividend to grow at a rate of 3.8095% per year, what overall rate of return is the market expecting on the stock, as implied by the dividend-growth model?

Reference no: EM131822477

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