Explore BrainMass
Share

Explore BrainMass

    Growth rate in Dividend

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    100. A company stock has a current market value of 40.50. The co. just paid a dividend = to 1.50 per share, which is expected to grow at a constant rate forever into the future. If the co. marginal investors require a rte of return = to 12%, what is the rate at which dividends are expected grow in the future.

    8.3%
    12.0
    4,0
    8.0

    There is not enough information to answer this question.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:22 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/growth-rate-in-dividend-55358

    Solution Summary

    This explains the computation of growth rate of dividend with the help of an example

    $2.19