What is the stock growth rate

Reference no: EM13304235

Grant Corporation's stock is selling for $40 in the market. The company's beta is 0.8, the market risk premium is 6%, and the risk-free rate is 9%. The previous dividend was $2 and dividends are expected to grow at a constant rate. What is the stock's growth rate?

a. 5.52%
b. 5.00%
c. 13.80%
d. 8.80%
e. 8.38%

Reference no: EM13304235

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