Explore BrainMass
Share

Explore BrainMass

    What is expected annual dividend growth rate

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

    Today's selling stock price is $50, dividend paid yesterday of $5. Dividend expected to grow steadily at 10% next 2 yrs. Required rate of return 15%. What is expected annual growth rate after yr 2?

    © BrainMass Inc. brainmass.com October 10, 2019, 1:33 am ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/what-is-expected-annual-dividend-growth-rate-339750

    Solution Preview

    See attached file.

    Please see the attached Word file to find the full response, including the equations. The calculations have been updated to include the new information you provided: the price of the stock is $50, and the dividend that was just paid is $5.

    THE FOLLOWING TEXT IS INCLUDED SOLELY FOR SEARCH PURPOSES.

    The model you would need to apply to solve this problem is based on the Two-stage Dividend ...

    Solution Summary

    This solution helps with calculations of annual dividend growth rate.

    $2.19