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Radhika Gupta is an equity analyst who is valuing the shares of PDD Ltd. The company's earnings and dividends are expected to grow at


 

Radhika Gupta is an equity analyst who is valuing the shares of PDD Ltd. The company's earnings and dividends are expected to grow at a constant annual rate over the foreseeable future. The company has recently paid a dividend per share of $1.40, and the required rate of return on the shares is 10% p.a. Based on this information the current price of the shares has been estimated at $30.00. The constant annual growth rate in dividends that is implied by this information is closest to:

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