Walter utilities is a dividend-paying company and is expected to pay an annual dividend of $0.65 at the end of the year. its dividend is expected to grow at a constant rate of 9.50% per year. if walter’s stock currently trades for $12.00 per share, what is the expected rate of return? 954.95% 14.92% 921.67% 1,006.88%

option 14.92%

Explanation:

Data provided in the question;

Expected annual dividend to be paid = $0.65

Expected growth rate = 9.50%

Walter’s stock currently trades = $12.00 per share

Now,

Expected rate of return = + Growth rate

or

Expected rate of return = + 9.50%

or

Expected rate of return = ( 0.054167 × 100% ) + 9.50%

or

Expected rate of return = 5.4167% + 9.50%

or

Expected rate of return = 14.9167 ≈ 14.92%

Hence, the correct answer is option 14.92%

answer; ( prices are sticky);

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.