The Sisyphean Company's Common Stock Is Currently Trading for $25

question 12

Multiple Choice

The Sisyphean Company's common stock is currently trading for $25.00 per share.The stock is expected to pay a $2.50 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 14%.If the dividend payout rate is expected to remain constant,then the expected growth rate in the Sisyphean Company's earnings is closest to:

• A)8%.
• B)6%.
• C)4%.
• D)2%.

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