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Company why does not plow back any earnings and is expected to produce a level Divet...

Company why does not plow back any earnings and is expected to produce a level Divet in the stream of $5.90 this year. If the current stock price is $40.90. What is the market capitalization rate? (Into your answer as a percent round it to two decimal places.)
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Answer #1
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Statement showing Computations
Particulars Amount
Market capitalization rate = Annual dividend / Current stock price
Annual dividend                      5.90
Current stock price                    40.90
Market capitalization rate = 5.90/40.90 14.43%
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