Berg Inc. has just paid a dividend of $2.00, and is now selling for $48 per share. Similar stocks generally earn a 12.5% return. Assuming that Berg Inc. is a constant growth stock, what is its expected rate of growth?
A) 5.0%
B) 6.0%
C) 7.0%
D) 8.0%
E) 9.0%
Correct Answer:
Verified
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