A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% O C. 5.52% O D. 22.08%

Personal Finance
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ISBN:9781337669214
Author:GARMAN
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Chapter14: Investing In Stocks And Bonds
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A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected
annual growth rate of the company's dividends?
O A. 11.04%
O B. 16.56%
O C. 5.52%
O D. 22.08%
Transcribed Image Text:A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% O C. 5.52% O D. 22.08%
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