A share is trading at R606,82 per share. The share is expected to have a year-end dividend of R8,50 per share, and it is expected to grow at a constant rate throughout. The shares’ required rate of return is 11% (assume the market is in equilibrium with the required return equal to the expected return). 

What is your forecast of the constant growth rate?

Answer rating: 100% (QA)

To find the constant growth rate we can use the Gordon Growth Model which is P D r g ... View the full answer