Assume that the stock is priced in equilibrium what is the


Based on the following information concerning NBM stock,

Dividend just paid, D0: $4

Beta: 1.5

Risk free rate: 5%

Market risk premium: 7%

Current market price, P0: $200

Assume that the stock is priced in equilibrium, what is the dividend growth rate implied by these numbers?

a. 10%

b. 13.24%

c. 15%

d. 11.33%

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Financial Management: Assume that the stock is priced in equilibrium what is the
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