You are considering the purchase of Miller Manufacturing, Inc.'s common stock. The stock is selling for $21.00 per share. The next dividend is expected to be $2.10, and you expect the dividend to keep growing at a constant rate

If the stock is returning 15%, calculate the growth rate of dividends.
A) 3%
B) 5%
C) 8%
D) 10%


Answer: B

Business

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