Backford Company just paid a dividend yesterday of $2.25 per share. The company's stock is

currently selling for $60 per share, and the required rate of return on Backford Company stock is
16%.

What is the growth rate expected for Backford Company dividends assuming constant
growth?
A) 9.89% B) 11.81% C) 9.47% D) 10.87%

B

Business

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