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What is expected annual dividend growth rate

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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?

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This solution helps with calculations of annual dividend growth rate.

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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 ...

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