Expected dividend growth rate of banana

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Banana is a global technology company known for its peculiarly shaped mobile phones. Banana's share price is $53 and it just paid a dividend of $3.60 per share. The appropriate discount rate for Banana's equity is 10%. What is the expected dividend growth rate of Banana according to the Gordon model? Provide your answer as a decimal number with three significant digits. For example, if you find the growth rate to be 1.234%, enter 0.0123.

Reference no: EM133073943

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