Market consensus rate of growth for the stock dividends

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Reference no: EM132050206

A share of common stock is expected to pay a dividend of $3.75 at the end of the year. The expected long-run growth rate for this stock is 8%, and investors require an 11% rate of return. What should the fair price of the stock? If the stock is currently trading for $110, what is the market’s consensus rate of growth for the stock’s dividends?

Reference no: EM132050206

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