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    Growth Model

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    How do I start a growth model to this problem?

    Constant-Growth Model.

    Arts and Crafts, Inc. will pay a dividend of $5 per share in 1 year. It sells at $50 a share, and firms in the same industry provide an expected rate of return of 14 percent. What must be the expected growth rate of the company's dividends?

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    https://brainmass.com/economics/barriers-to-growth/finance-growth-model-125978

    Solution Preview

    Arts and Crafts, Inc. will pay a dividend of $5 per share in 1 year. It sells at $50 a share, and ...

    Solution Summary

    Growth rate is determined.

    $2.49

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