Cum-dividend earnings growth q25

The following table shows forecasts for earnings per share and dividends per share for a firm with a required return on its shares of 12%.

	2017	2018	2019
Earnings per share	$6.00	$6.50	$7.50
Dividends per share	$0.90	$1.00	$1.10

The cum-dividend earnings growth rate in 2019 consistent with the forecasts is:

Select one:

a.

30.8%

b.

15.5%

c.

14.7%

d.

17.2%