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Rampart Corporation has a dividend yield of 1.3%. Its equity cost of capital is 8.3%, and its dividends are expected to grow at a constant
Rampart Corporation has a dividend yield of 1.3%. Its equity cost of capital is 8.3%, 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? a. The growth rate will be %. (Round to one decimal place.) b. What is the expected growth rate of Rampart's share price? (Select the best choice below.) O A. With constant dividend growth, share price is also expected to grow at rate g=1.3%. B. With constant dividend growth, share price is also expected to grow at rate g=7.0%. C. With constant dividend growth, share price is also expected to grow at rate g = 8.3%. With constant dividend growth, share price is also expected to grow at rate g= 7.0% -1.3% = 5.7%. D
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