19. Chapter MC, Section 07, Problem 065.Algo Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $26.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? Select the correct answer.
a. 4.76% b. 5.10% c. 6.12% d. 5.44% e. 5.78%