What is the market rate of return on the given stock

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Question: The common stock of Eddie's Engines, Inc. sells for $27.81 a share. The stock is expected to pay $2.70 per share next year. Eddie's has established a pattern of increasing their dividends by 4.8 percent annually and expects to continue doing so. What is the market rate of return on this stock?

Reference no: EM131956533

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