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    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%

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    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.