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 $32.50 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 one:

a. 6.01%
b. 6.17%
c. 6.33%
d. 6.49%
e. 6.65%

Expected growth rate will be 6.65 %

So option (E) will be correct answer

Explanation:

We have given expected to pay a dividend at the end of the year

Stock price

Required rate of return

We have to find the expected growth rate

We know that expected growth rate is given by

%

So option (E) will be the correct answer

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation:

answer; buying the bill at a discount from the face value to be received at maturity;