If the price of River Bank stock is $35, next year's dividend is expected to be $2.50, and the required return is 15%, what is the expected dividend growth rate?

A) 7.9%
B) 5.2%
C) 15.0%
D) 12.0%
E) 13.0%

A

Business

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The higher the degree of financial leverage (DFL), the greater the leverage a given financing plan has, and the steeper its slope when plotted on EBIT-EPS axes

Indicate whether the statement is true or false

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