Multiple Choice
Seven-Seas Co. just paid a dividend of $3 per share out of earnings of $5 per share. If its book value per share is $40.00 and its market price is $52.50 per share, calculate the required rate of return on the stock.
A) 12 percent
B) 11 percent
C) 5 percent
D) 6 percent
Correct Answer:
Verified
Correct Answer:
Verified
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