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Given That the Cost of Common Stock Is 18 Percent

Question 66

Multiple Choice

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


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

Correct Answer:

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