BC Corporation common stock has just paid a dividend of $2.20 per share. Its dividend is expected

Question:

BC has just paid a of $2.20 per share. Its is expected to grow at a rate of 5 percent per year indefinitely. The current stock price is $30 and the risk premium associated with this stock is 8.7 percent. What is the implied risk free rate?
A. 3.63%
B. 3.70%
C. 4.00%
D. 4.42%
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...