A company has stock which costs $42.75 per share and pays a dividend of $2.70 per share this year. The company's cost of equity is 9%. What is the expected annual growth rate of the company's dividends? ..... O A. 10.72% O B. 5.36% O C. 2.68% O D. 8,04%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A company has stock which costs $42.75 per share and pays a dividend of $2.70 per share this year. The company's cost of equity is 9%. What is the
expected annual growth rate of the company's dividends?
O A. 10.72%
В. 5.36%
С. 2.68%
O D. 8.04%
Transcribed Image Text:A company has stock which costs $42.75 per share and pays a dividend of $2.70 per share this year. The company's cost of equity is 9%. What is the expected annual growth rate of the company's dividends? O A. 10.72% В. 5.36% С. 2.68% O D. 8.04%
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