You are an experienced retail investor on RobinHood, and you anticipate that a stock will pay a $10 dividend next year. You expect dividends to grow at a constant rate each year. The stock price is $700 and the expected rate of return is 2%. What fraction of the stock's value today reflects expected dividend growth?

Answer rating: 100% (QA)

To calculate the fraction of the stocks value today that reflects expected dividend growth you can ... View the full answer