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Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1= $1.25). The stock sells for $17.50
Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1= $1.25). The stock sells for $17.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Select the correct answer.
a. 3.57%b. 3.36%c. 3.15%d. 2.94%e. 3.78%
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