The stock price of Samuelson, Inc., is $71. Investors require a 15 percent rate of return on similar stocks. If the company plans to pay a dividend of $4.20 next year, what growth rate is expected for the company's stock price?
A) 6.01 percent
B) 7.56 percent
C) 7.78 percent
D) 8.24 percent
E) 9.08 percent
Correct Answer:
Verified
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