Answer:
1.24%
Explanation:
The Sisyphean company's common stock is currently being traded at $28 per share
The dividend is $2.9
The company's equity cost of capital is 12%
= 12/100
= 0.12
Therefore, the expected growth rate is calculated as follows
Growth rate= Equity cost of capital-(Dividend/Current price)
= 0.12-(2.9/28)
= 0.12-0.103571
= 0.01243×100
= 1.24%
Hence the expected growth rate is Sisyphean company's earning is closest to 1.24%
