QUESTION 14 Growth Co has decided to acquire one of its major competitors Cerxit Co. It is now in the process of collecting relevant information in order to decide an appropriate bid to offer. Both the businesses are listed on the stock exchange and operate in the same industry. Gamma Co has issued 8 million ordinary shares and the price of each ordinary share is $4.50. The latest earnings per share of the business is 80 cents. Growth Co has a history of paying 60% of the total earnings as dividends. The industry average price / earnings ratio is 7. The equity beta applicable to Growth Co is 1.3. The taxation rate is 30%, The risk free rate in the market is 4% and the equity risk premium is 6%. b) Assuming that the cost of equity of Growth Co is 9%, calculate the applicable growth rate (g" bxre). Provide your calculations and explanation of the chosen answer A 3.60% B 4,60% C 5.40% D 6.0096 3 (121) !!! Arial III TTTT Paragraph XDOQ O S. Mashup Words PHP