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What is the equilibrium expected growth rate

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Question - Star Manufacturing is expected to pay a dividend of $2.00 per share at the end of the year (D1 = $2.00). The stock sells for $60 per share, and its required rate of return is 11%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? Please show your calculations.

Reference no: EM133031641

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