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    Growth rate in Dividend

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    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.


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    Solution Summary

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