Calculate the market required rate of return

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Reference no: EM132204060

Dividends.com just paid its first annual dividend of $1.20 and projects that next year's dividend will grow by 3.5%.

a. How much will next year's dividend be?

b. If the current stock price is $10.90, what is the (forward) dividend yield?

c. Calculate the market's required rate of return.

Reference no: EM132204060

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