Suppose that the current stock price and most recent annual dividend per share for a public firm are $24.25 and $1.10, respectively. The annual dividend per share will grow at a constant rate. If the discount rate is 8.5%, the implied dividend growth rate is closest to:

3.12%

2.76%

3.79%

3.96%

 

Answer rating: 100% (QA)

Step 13 Given Data Current Stock Price IV 2425 Current Annual Dividend Per Share Do 110 Req... View the full answer