Dorpac Corporation has a dividend yield of 1.9%. Its equity cost of capital is 7.8%, and its dividends are expected to grow at a constant rate.

a. What is the expected growth rate of Dorpac's dividends?

b. What is the expected growth rate of Dorpac's share price?

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Part 1

a. What is the expected growth rate of Dorpac's dividends?

The growth rate will be

(Round to one decimal place.)

Part 2

b. What is the expected growth rate of Dorpac's share price?

What is the expected growth rate of Dorpac's share price? (Select the best choice below.)