Dividend Growth Rate
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What is the expected constant growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 18%?
A) 3.41%
B) 5.50%
C) 9.26%
D) 12.5%
https://brainmass.com/business/finance/dividend-growth-rate-example-problem-249663
Solution Preview
The following equation is used to calculate the price of a stock given a constant growth ...
Solution Summary
This solution calculates the expected constant growth rate of a stock.
$2.49