Question
Dorpac Corporation has a dividend yield of 1.5%. Its equity cost of capital is 8.0%,and its dividends are expected to grow at a constant rate.
Dorpac Corporation has a dividend yield of 1.5%. Its equity cost of capital is 8.0%,and its dividends are expected to grow at a constant rate.
a. What is the expected growth rate ofDorpac's dividends?
b. What is the expected growth rate ofDorpac's shareprice?
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
