Answer (B) is correct . Dividing the $5.50 dividend by the $50 share price produces an 11% dividend yield. Adding the 11% yield to the 4.5% growth rate produces a total return of 15.5%. The beta coefficient is irrelevant.
Answer (A) is incorrect because This percentage adjusted the growth rate by the β, which is not required.
Answer (C) is incorrect because This percentage adjusted the growth rate upward by the β.
Answer (D) is incorrect because This percentage adjusted the share price by the β.
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