What is the stocks expected rate of return

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Reference no: EM13729807

Jackson Corp. common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12-percent annual rate forever. If Jackson's current market price is $40.00, what is the stock's expected rate of return (nearest .01 percent)?

a. 19.00%

b. 18.25%

c. 11.00%

d. 5.50%

Reference no: EM13729807

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