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    Dorpac Corporation

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    Dorpac Corporation has a dividend yield of 1.5%. Dorpac's equity cost of capital is 8%, and its dividends are expected to grow at a constant rate.

    a. What is the expected growth rate of Dorpac's dividends?
    b. What is the expected growth rate of Dorpac's share price?

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    Dorpac Corporation has a dividend yield of 1.5%. Dorpac's equity cost of capital is 8%, and ...

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    This solution is comprised of a detailed explanation to answer what is the expected growth rate of Dorpac's dividends.

    $2.19