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What is the market-implied dividend growth rate

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Question - A firm has equity beta of 2.1. The market risk premium is 4%, and the risk-free rate is 2.8%. The firm just paid a dividend of $5 per share, its next dividend is expected one year from now, and expected dividends will grow at a constant rate.  If the firm's price is $65, what is the market-implied dividend growth rate?

Reference no: EM133027798

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