Berg Inc. has just paid a dividend of $2. Its stock is now selling for

Berg Inc. has just paid a dividend of $2. Its stock is now selling for $48 per share. The firm is half as risky as the market. The expected return on the market is 14%,

and the yield on U.S. Treasury bonds is 11%. If the market is in equilibrium, what rate of growth is expected?
A) 13%
B) 10%
C) 4%
D) 8%
E) -2%

ANSWER

D