Answer:
I think the answer is <em>D</em>
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Answer:
True sorry if I’m wrong
Step-by-step explanation:
Answer:
the equilibrium expected growth rate is 6.65%
Step by step Explanation:
We were given stock sold per share of $32.50
Dividend per share =$1.25
Required Return rate = 10.5%
Then we can calculate Percentage of Dividend for share as;
dividend of br. 1.25 per share at the end of the year (D1=br.1.25)
= 1.25×100= 125
Let the dividend percentage = y
stock sold per share × y= 125
125= 32.50y
y = 125/32.50
y= 3.85
y= 3.85*100%
Then the Dividend percentage = 3.85%
Growth rate=(required rate of return -Dividend percentage)
= 10.5 - 3.85 = 6.65
Therefore, the equilibrium expected growth rate is 6.65%
Answer:
option is a 122.76in whole it is correct
