Question
The Sisyphean Company's common stock is currently trading for $28 per share. The stock is expected to pay a $2.10 dividend at the end of
The Sisyphean Company's common stock is currently trading for $28 per share. The stock is expected to pay a $2.10 dividend at the end of the year and the SisypheanCompany's equity cost of capital is 14%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to:
A. 3.25%
B. 13%
C. 9.75%
D. 6.5%
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Investment Science
Authors: David G. Luenberger
2nd Edition
0199740089, 978-0199740086
