The common stock of Eddie's Engines, Inc. sells for $18 a share. The stock is expected to pay $1.58 per share next month when the annual dividend is distributed. Eddie's has established a pattern of increasing their dividends by 2.8% annually and expects to continue doing so. What is the market rate of return on this stock

11.6%

Explanation:

Calculation for What is the market rate of return on this stock

Using this formula

Rate of return=D/P + g

Where,

D=1.58 per share

P=$18

g=.028

Let plug in the formula

Rate of return=1.58/$18+.028

Rate of return =0.088+.028

Rate of return=0.116*100

Rate of return=11.6%

Therefore the market rate of return on this stock will be 11.6%

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.