Maspeth Robotics shares are currently selling for € 24 and have paid a dividend of € 1 per share for the most recent year. The following additional information is given:
The risk - free rate is 4 percent.
The shares have an estimated beta of 1.2.
The equity risk premium is estimated at 5 percent.
Based on the above information, determine the constant dividend growth rate that would be required to justify the market price of € 24.