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.
Answer:C
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.