A firm has a return on equity (ROE) of 15% and a dividend payout rate of 80%. If last year’s dividend was $0.80 and the required return on equity is 10%, what is the firm’s estimated dividend growth rate and what is the current stock price Dividend growth rateStock price() ①A. 12.00% $ 11.77②B. 3.00% $ 9.96③C. 3.00% $ 11.77
A.①
B.②
C.③