Question: Question 1 4 pts Questions (Al-A2) are based on the information that follows. Net earnings for a constant dividend growth firm are currently $60 million

Question 1 4 pts Questions (Al-A2) are based on the information that follows. Net earnings for a constant dividend growth firm are currently $60 million and expected to grow forever at 10%. The firm has a policy of paying out a constant 30% of earnings as dividends. Shares outstanding are 5 million RM 12.5% and Res5%. The firm's cost of capital is 17.5% and is expected to be unchanged for the indefinite future. A2. What should be the expected dividend yield on the stock? (a) 12.5% (b) 7.5% (c) 17.5% (d) 9.5% le) cannot be determined based on the information given Next

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