Annual dividend on common stock-what is the rate of return

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1. 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?

2. You have $100,000 saved today and plan to withdraw $8,000 a year. How long can you make these withdrawals if you earn an annual percentage rate of 3.5 percent?

Reference no: EM131339113

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