Solution-Compute the dividend growth rate

Compute the dividend growth rate

Reference no: EM132696160

A company is expected to pay a dividend of $3.25 per share next year (t=1) and the dividend is expected to grow at a constant rate forever. The stock is currently selling for $42. If the required rate of return is 10 percent, what is the dividend growth rate? Please show step by step process and keep 2 digits after the decimal point.

Reference no: EM132696160

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Compute the dividend growth rate

Reference no: EM132696160

Reference no: EM132696160

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