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#22 Mature Corp. has stock which costs $42.00 per share. The company expects to pay a dividend of $2.00 per share this coming year and
#22
Mature Corp. has stock which costs $42.00 per share. The company expects to pay a dividend of $2.00 per share this coming year and the dividands are expected to grow at some constant grotwth rate thereafter. The company's cost of equity capital is 12%. What is the expected annual growth rate of the company's dividends?
A. 10.14%
8. 7.24%
c. 13.03%
D. 4.34%
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