Using the constant-growth-what is the dividend growth rate

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Reference no: EM131560699

Cache Creek Manufacturing Company is expected to pay a dividend of $3.36 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth DDM to determine the value of the stock. The stock's current price is $84. Using the constant-growth DDM, what is the dividend growth rate?

Reference no: EM131560699

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