Nu Tek's next annual dividend will be $4.26 a share and all later dividends are expected to increase by 4.4 percent annually.What is the rate of return if this stock is currently selling for $48.74 a share?

Name: Nu Tek's next annual dividend will be $4.26 a share and all later dividends are expected to increase by 4.4 percent annually.What is the rate of return if this stock is currently selling for $48.74 a share?
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Question

Quizplus · Accepted Answer

R = ($4.26 / $48.74)+ 0.044 R = 0.1314,or 13.14%

Nu Tek's Next Annual Dividend Will Be $4