The Vinyard recently paid a $2.38 annual dividend on its common stock.This dividend increases at 1.75 percent per year and currently sells for $40.15 a share.What is the rate of return?

Name: The Vinyard recently paid a $2.38 annual dividend on its common stock.This dividend increases at 1.75 percent per year and currently sells for $40.15 a share.What is the rate of return?
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Question

Quizplus · Accepted Answer

R = [($2.38 × 1.0175)/$40.15] + .0175R = .0778,or 7.78%

The Vinyard Recently Paid a $2