Aldabras stock sells for $40, its next expected dividend is $1.82, and its expected constant...

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Finance

Aldabras stock sells for $40, its next expected dividend is $1.82, and its expected constant growth rate of dividends is 6.25%. Assuming that the stock is in equilibrium, what is the expected rate of return?

Group of answer choices

a. 12.5%

b. 10.8%

c. 11.2%

d. 9.7%

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