Dorpac corporation has a dividend yield of 16 its equity, Ask an Expert

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Dorpac Corporation has a dividend yield of 1.6%. Its equity cost of capital is 8.7%?, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of? Dorpac's dividends? b. What is the expected growth rate of? Dorpac's share? price?

a. What is the expected growth rate of? Dorpac's dividends? The growth rate will be %. ?(Round to one decimal? place.)

b. What is the expected growth rate of? Dorpac's share? price? ?(Select the best choice? below.)

A. With constant dividend? growth, the share price is expected to grow at rate g =8.7%.

B. With constant dividend? growth, the share price is expected to grow at rate g=1.6%.

C. With constant dividend? growth, the share price is expected to grow at rate g =7.1%−1.6%=5.5%.

D. With constant dividend? growth, the share price is expected to grow at rate g=7.1%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92712055

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