Question
A Corp. is expected to pay a dividend of SI.25 per share at the end of the year (D 1 - SI.25). The stock sells
A Corp. is expected to pay a dividend of SI.25 per share at the end of the year (D 1 - SI.25). The stock sells for $27.50 per share, and its required rate of return is 10.75%. The dividend is expected to grow at some constant rate, g. forever. What is the equilibrium expected growth rate?
O a.6.35%
O b.9.20%
O c. 6.20%
O d. 5.96%
O e. 1.20%
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
