Answer:
64%
Explanation:
The common stock for Olmsted repair is sold at $47.92
The stock is expected to make a payment of $2.28 when the next annual dividend is distributed
The company increases its dividend by 1.65%
= 1.65/100
= 0.0165
Therefore, the market rate of return on the stock can be calculated as follows
= div/Po + g
= 2.28/47.92 + 0.0165
= 0.0475+ 0.0165
= 0.064
= 64%
Hence the market rate of return on the stock is 64%
