The Flower & Gift Co. pays a constant annual dividend of $1.74 a share and currently...

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The Flower & Gift Co. pays a constant annual dividend of $1.74 a share and currently...

The Flower & Gift Co. pays a constant annual dividend of $1.74 a share and currently sells for $15.00 a share. What is the rate of return?

Question 7 options:

	3.87 percent
	4.64 percent
	5.80 percent
	10.40 percent
	11.60 percent

business finance

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Answer 1

Answer #1

Answer: The correct answer is 11.60%
Share price=Annual dividend/Rate of return
=>Rate of return=Annual dividend/Share price
=1.74/15=.116 or 11.60%

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Answer 2

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