Fris B. Corporation stock is currently selling for $42.86. It is expected to pay a dividend of $3.00 at the end of the year. Dividends are expected to grow at a constant rate of 3% indefinitely. Compute the required rate of return on FBC stock

A) 10%
B) 33%
C) 7%
D) 4.3%


Answer: A

Business

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