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Your research on Shetland Co. stock shows the following information. Expected dividend (D1) = $3.00 Current Price (PO) = $50.

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Answer #1

Answer:- Growth Rate and expected dividend yield are equal

Explanation:- Expected Dividend Yield = D1 / PO = Expected Dividend / Current Price = $3 / $50 = 0.06 or 6% and the Growth Rate is also 6%. So, Growth Rate and expected dividend yield are equal.

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