If d0 = $1.75, g (which is constant) = 3.6%, and p0 = $32.00, what is the stock's expected total return for the coming year? a. 8.37% b. 8.59% c. 9.27% d. 9.03% e. 8.81%

Find using formula

---------------------------------(1)

Now g = 3.6 % =

So plug 0.036 in g place, 1.75 in place in formula given by (1)

--------------------------------(2)

Now dividend yield is given by formula:

So plug as 1.813 and value as 32 in formula above

so we get dividend yield =

dividend yield % will be = 0.05665 × 100 = 5.665 %

Expected total return will be = dividend yield + g

= 5.665 % + 3.6%

= 9.265%

Round it to two decimal places so we get 9.27% as final answer for return

So choice (c) 9.27% is the right answer