Please financial accounting question provide answer A company's current stock price is $85.10 and it is likely to pay a $4.10dividend next year. Since analysts estimate the company will have a 12%growth rate, what is its expected return?

The expected return on a stock can be estimated using the Dividend Discount Model (DDM) for a stock…

Answered: A company's current stock price is…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 16MC

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A company's current stock price is $85.10 and it is likely to pay a $4.10 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return?