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Bezzdna [24]
3 years ago
9

The Phelps Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at th

e end of the year and the Phelps Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Phelps Company's earnings is closest to _________A. -1.96% B. -1.47% C. -0.98% D. -0.49%
Business
1 answer:
Lynna [10]3 years ago
3 0

Answer:The correct option is C  = 0.98%

Explanation:

Ok so we do 25.50 - 2.80 because its being taken out

then we divide the answer we get by 10

or multiply it by .10

Hope this helps :)

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