Johnstown Supply Corporation stock is currently selling for $58.00.It is expected to pay a dividend of $5.00 at the end of the year.Dividends are expected to grow at a constant rate of 7.5% indefinitely.Compute the required rate of return on Johnstown Supply Corporation stock.
A) 12.48%
B) 15.65%
C) 13.64%
D) 16.12%
Correct Answer:
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