number 14

14. The current dividend yield on Ford's common stock is 5.75 percent. The company just paid a $1.8 annual dividend and announced plans to pay $1.908 next year. The dividend growth rate is expected to remain constant at the current level. If BMW's common stock has a same required rate of return as Ford's common stock but currently paid a dividend for $2.65 and its price exceeds that's of Ford's by $5.7504 then how much could be the growth rate for BMW's stock? Choose the closest answer OA) 4.63% O B) 6% O C) 7.25% OD) 11.75% E) None of the above