Given that the cost of common stock is 18 percent, dividends are $1.50 per share and the price of the stock is $12.50 per share, what is the annual growth rate of dividends?

A) 4 percent
B) 5 percent
C) 6 percent
D) 8 percent


C

Business

You might also like to view...

Briefly discuss application service providers (ASP) and Software as a Service (SaaS)

Business

One of the benefits of strong brand equity is more elastic consumer response to price increases

Indicate whether the statement is true or false

Business

What are the benefits to an organization of brand equity?

What will be an ideal response?

Business

An investor puts $10,000 in an account earning 4 percent compounded interest. At the end of three years, the account will have a value of:

A) less than $11,000. B) between $11,000 and $11,200. C) between $11,200 and $11,400. D) more than $11,400.

Business