What must the market projected growth rate

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Reference no: EM131185258

Greshak Corp. currently has stock outstanding with a market price $42.00. The market anticipates that the company will pay a dividend of $4.00 per share next year and Greshak's return on equity has averaged 14.0% while the market's required rate of return for the stock is 12.0%. Given this information, what must the market's projected growth rate be for Greshak's stock (rounded)?

Select one: a. 1.5% b. 2.0% c. 2.5% d. 3.6% e. 4.5%

Reference no: EM131185258

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