Dividends of $2.95 per share were paid by Overton & Co. overthe last twelve months. Today the stock price is $63.40, andthe company's discount rate is 12.76%. Assuming the constantgrowth model applies. the dividend growth rate percentage is:O A. 7.75%.O B. 12.19%.O C. 4.65%.< Question 3 of 5 >>O Type here to search10:14 PM10/18/2021

Last dividend (D0) = $ 2.95 Current stock price (P0) = $ 63.40 Discount rate (R) = 12.76%

Answered: Dividends of $2.95 per share were paid…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 5P

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Dividends of $2.95 per share were paid by Overton & Co. over the last twelve months. Today the stock price is $63.40, and the company's discount rate is 12.76%. Assuming the constant growth model applies. the dividend growth rate percentage is: O A. 7.75%. O B. 12.19%. O C.4.65%.