Question $27(1$ point$)$

Canopus, Inc. is expected to pay a dividend of $$2\mathrm{.}40$ next year $($i$.$e$.,D_1=2\mathrm{.}40)$ and its

current stock price is $$25\mathrm{.}00.$ The discount rate for the company is $12\mathrm{.}3\%.$ If the

market expects Canopus's dividends to grow at a constant rate forever, then the

growth rate must be $\%$

$3\mathrm{.}90$

$3\mathrm{.}50$

$3\mathrm{.}10$

$2\mathrm{.}70$

$4\mathrm{.}30$