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Question
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) 5.50%
B) 11.00%
C) 18.25%
D) 19.00%
Answer
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