Rampart Corporation has a dividend yield of $1\mathrm{.}6\%.$ Its equity cost of capital is $7\mathrm{.}4\%,$ and its dividends are expected to grow at a constant rate.

a$.$ What is the expected growth rate of$$ Rampart's dividends?

b$.$ What is the expected growth rate of$$ Rampart's share$$ price?

Question content area bottom

Part $1$

a$.$ The growth rate will be

$$

enter your response here$\%.($Round to one decimal$$ place.$)$

Part $2$

b$.$ What is the expected growth rate of$$ Rampart's share$$ price? $($Select the best choice$$ below.$)$

A$.$

With constant dividend$$ growth, share price is also expected to grow at rate g equals $5\mathrm{.}8\%$ minus $1\mathrm{.}6\%$ equals $4\mathrm{.}2\%.$

B$.$

With constant dividend$$ growth, share price is also expected to grow at rate g equals $1\mathrm{.}6\%.$

C$.$

With constant dividend$$ growth, share price is also expected to grow at rate g equals $7\mathrm{.}4\%.$

D$.$

With constant dividend$$ growth, share price is also expected to grow at rate g equals $5\mathrm{.}8\%.$