Answer the following.

a.

b.

Berg Inc. has just paid a dividend of $2. lts stock in now selling for $48 per share. The firm is half as risky as the market. The expected return on the market is 14%, and the yield on U.S. Treasury bonds is 11%. If the market is in equilibrium what rate of growth is expected? O A. 4% O B. 2% O C. 10% O D. 13% O E. 8%