Determine the expected annual growth rate of the dividend

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Use the Dividend Discount Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual divided of $14.84 per share in one year. ELO shares are currently trading for $671.49 on the NYSE, and the expected annual rate of return for ELO shares is 9.05%. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34). 

Reference no: EM131333778

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