Dividend growth rate-shack diesel company

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Shack Diesel Company has stock trading today at $41.79 per share. The company just paid a $2.47 per share dividend. Kenny Smith, an analyst, believes investors should seek a 11.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions?

Reference no: EM132455714

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