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Taggart Transcontinental Has a Divided Yield of 2

Question 50

Multiple Choice

Taggart Transcontinental has a divided yield of 2.5%.Taggart's equity cost of capital is 10%,and its dividends are expected to grow at a constant rate.Based on this information,Taggart's constant growth rate in dividends is closest to:


A) 2.5%
B) 5.0%
C) 10.0%
D) 7.5%

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