Which supernormal growth is a growth rate that

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Problem 1: Dixie South currently pays an annual dividend of $1.46 a share and plans on increasing that amount by 2.75 percent annually. Northern Culture currently pays an annual dividend of $1.42 a share and plans on increasing its dividend by 3.1 percent annually. Given this information, you know for certain that the stock of Northern Culture has a higher __________ than the stock of Dixie South.

a. Market price

b. Dividend yield

c. Capital gains yield

d. Total return

e. Real return

Problem 2: Supernormal growth is a growth rate that:

a. Is both positive and follows a year or more of negative growth.

b. Exceeds a firm's previous year's rate of growth.

c. Is generally constant for an infinite period of time.

d. Is unsustainable over the long term.

e. Applies to a single, abnormal year

Reference no: EM132819743

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