(Solved): A stock sells for $100 in the market. The company's beta is 1.6 , the market risk premium (rM ...

A stock sells for $\$100$ in the market. The company's beta is 1.6 , the market risk premium $\left(r_{\mathrm{M}}-r_{\mathrm{F}}\right)$ is $5\%$, and the risk-free rate is $3\%$. The most recent dividend paid is D0 $=\$1.0$ and dividends are expected to grow at a constant rate g. Calculate the stock's expected dividend yield. $0.82\%$ $1.10\%$ $2.22\%$ $3.70\%$