Required rate of return on this stock according to model

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Reference no: EM13812386

You read that the company just paid $6.64 dividend per share and has a growth rate of 12%. You also read its share price is $140.76. You believe the constant growth dividend model applies perfectly to this properly valued stock. What is the required rate of return on this stock according to the model?

a. 20.83%

b. 18.46%

c. 22.56%

d. 17.29%

e. 19.01%

Reference no: EM13812386

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