Determine the dividend growth rate

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Suppose the Price/Earnings Ratio for the S&P 500 is 15 and the dividend payout ratio of the S&P 500 is 38%. The future growth rate of dividends is expected to be 3.7%.

-Use Goal Seek or Solver (be sure to identify which one you choose) to determine the dividend growth rate that would yield an expected Market return of 7%.

Reference no: EM133068986

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