A company recently paid a $3.50 dividend. It plans to increase this dividend by 15% next year. The year after, it will begin reducing its dividend by 3% per year until it arrives at the sector average of 5%. The company's stock currently sells for $75. 

What is the market signaling is the company's appropriate discount rate?

Answer rating: 100% (QA)

The market signaling the companys appropriate discount rate is the stock price To calculate the appr... View the full answer