Last year, when the stock of Alpha Minerals was selling for $49.50 a share, the dividend yield was 3.4 percent. Today, the stock is selling for $41 a share. What is the total return on this stock if the company maintains a constant dividend growth rate of 2.2 percent?
A. 6.13 percent
B. 6.58 percent
C. 6.40 percent
D. 6.47 percent
E. 6.38 percent
Ans: C. 6.40 percent
Business