What is the equilibrium expected growth rate

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Reference no: EM131959798

Jimbo Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25).

The stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever.

What is the equilibrium expected growth rate?

Reference no: EM131959798

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