Backford Company just paid a dividend yesterday of $2.25 per share.The company's stock is currently selling for $60 per share,and the required rate of return on Backford Company stock is 16%.What is the growth rate expected for Backford Company dividends assuming constant growth?
A) 9.47%
B) 9.89%
C) 10.87%
D) 11.81%
Correct Answer:
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