A stock is trading at $80 per share. The stock is expected to have a year-end dividend

Question:

A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = 4), which is expected to grow at some constant rate g throughout time. The stock’s required rate of return is 14 percent. If you are an analyst who believes in efficient markets, what would be your forecast of g?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...