Answer:
D) 7.5%
Step-by-step explanation:
Using dividend growth model,
Price, P = D / (r - g)
where, D = Dividend, r = cost of equity = 10% , and g= growth rate
we know that
=> r - g = D / P = Dividend yield = 2.5%
=> Growth rate, g = 10% - 2.5% = 7.5%
therefore the constant growth rate in dividends is closest to= 7.5%
The answer is B
hope that helps
90x+10y
Add 89 and 1
Add 5 and 5
90x+10y in this order
it is b because I did the problem yes it is b
this is it..............