BC Corporation common stock has just paid a dividend of $2.20 per share.Its dividend is expected to grow at a rate of 5 percent per year indefinitely.The current stock price is $30 and the risk premium associated with this stock is 8.7 percent.What is the implied risk-free rate?
A) 3.63%
B) 3.70%
C) 4.00%
D) 4.42%
Correct Answer:
Verified
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