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Question 19 4 pts A19. An all equity firm has $50 million in after tax earnings right now. These are paid out as dividends. It

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Question 19 4 pts A19. An all equity firm has $50 million in after tax earnings right now. These are paid out as dividends. It is also a constant dividend growth rate firm. Interest expense is therefore zero. The equity beta is 1.25. RRE-.05 and the market rate of return is 15%. The value of the firm is $537.5 million. What is the dividend growth rate? (a) 9.25% (b) 7.5% (c) 8.5% (d) 8.00% (e) 7.00%

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