Determine the implied growth rate of gldcs dividends

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Reference no: EM131338518

The common stock of General Land Development Company (GLDC) is expected to pay a dividend of $1.25 next year and currently sells for $25. Assume that the firm's future dividend payments are expected to grow at a constant rate for the foreseeable future.

Determine the implied growth rate of GLDC's dividends (and earnings), assuming that the required rate of return of investors is 12 percent.

Reference no: EM131338518

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