The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year

The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 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 market rate of return on this stock?    A.  7.42 percent B.  7.79 percent C.  19.67 percent D.  20.14 percent E.  20.86 percent

65.

The current dividend yield on Clayton's Metals common stock is 3.2 percent. The company just paid a $1.48 annual dividend and announced plans to pay $1.54 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock?    A.  7.25 percent B.  7.82 percent C.  8.08 percent D.  8.39 percent E.  8.75 percent

66.

Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the market rate of return?    A.  13.88 percent B.  14.03 percent C.  14.21 percent D.  14.37 percent E.  14.60 percent