The correct option is C :: - 0.98%
Calculated using Gorden growth model:
Value of stock = expected dividend in the next period / (cost of equity - expected constant growth rate)
25.50 = 2.80 / (0.15 - Growth rate)
hence the option C is growth rate of = - 0.98%
Question 16 1 pts The Phelps Company's common stock is currently trading for $25.50 per share....
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