The projected long-term growth rate of the dividends

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ABC pays consistent dividends that grow at a constant rate. ABC is expected to pay a dividend one year from now of $1.37 and the current price of the stock is $70.5. If the expected rate of return on the stock is 12.7%, then based on the discounted cash flow model assumptions, what is the projected long-term growth rate of the dividends? (Show your answer in decimal form to three places)

Reference no: EM132015099

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