Gamble and Johnson's (GJ) common shares are selling for $52.50.They are expected to pay a dividend of $2.25 next year and dividends should grow at a rate of 7% annually.What is your required rate of return on an investment in GJ common shares?
A) 11.30%
B) 19.25%
C) 12.00%
D) 15.75%
Correct Answer:
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