The dividend will be expected to grow at some constant rate

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DB company currently pays a dividend of $2 per share, (Do=$2). It is estimated that the company's dividend will grow at a rate of 10 percent per year for the next 3 years, then the dividend will be expected to grow at some constant rate of G percent thereafter. If the current price of DB stock is $60 and DB stock’s required rate of return is 12%. What is your forecast of G?

Reference no: EM131840223

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