Question
Given that the cost of common stock is 18 percent, dividends are $1.50 per share and the price of the stock is $12.50 per share,
Given that the cost of common stock is 18 percent, dividends are $1.50 per share and the price of the stock is $12.50 per share, what is the annual growth rate of dividends?
A) 4 percent
B) 5 percent
C) 6 percent
D) 8 percent
May i know how is it solved please.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
