The Phelps Company's common stock is currently trading for $25. 50 per share. The stock is expected to pay a $2. 80 dividend at the end of the year and the Phelps Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Phelps Company's earnings is closest to _________A. -1. 96% B. -1. 47% C. 0. 98% D. 0. 49%
