Calculate the economic rate of return on common stock

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Reference no: EM13129303

Which of the following formulas should be used to calculate the economic rate of return on common stock?

a. (Dividends + change in price) divided by beginning price
b. (Net income - preferred dividend) divided by common shares outstanding
c. Market price per share divided by earnings per share
d. Dividends per share divided by market price per share

Reference no: EM13129303

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