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Question 16 1 pts The Phelps Companys common stock is currently trading for $25.50 per share. The stock is expected to pay a

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Answer #1

The correct option is C :: - 0.98%

Calculated using Gorden growth model:

Value of stock = expected dividend in the next period / (cost of equity - expected constant growth rate)

25.50 = 2.80 / (0.15 - Growth rate)   

hence the option C is growth rate of = - 0.98%

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