Question: 11 the common stock of auto deliveries sells for 25...
11. The common stock of Auto Deliveries sells for $25 a share. The stock is
expected to pay $1.10 per share next year when the annual dividend is distributed. The
firm has established a pattern of increasing its dividends by 3 percent annually and
expects to continue doing so. What is the dividend yield? What is the market rate of
return on this stock?
Dividend yield =4.4%
Market rate of return = 7.4%
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