What is the equilibrium expected growth rate

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McDonnell Manufacturing is expected to pay a dividend of $1.60 per share at the end of the year (D1 = $1.60). The stock sells for $33.00 per share, and its required rate of return is 12.0%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

Reference no: EM132807014

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