A stock is current paying $3/share dividend. Its expected return is a constant 7%. It is currently

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A stock is current paying $3/share dividend. Its expected return is a constant 7%. It is currently traded at $80/share. Expected dividend growth is constant forever into the future.

What must the expected dividend growth rate be?

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1285850030

12th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Posted Date: Mar 10, 2023 05:10 AM

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A stock is current paying $3/share dividend. Its expected return is a constant 7%. It is currently

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To calculate the expected dividend growth rate we can use the Gordon Growth Mo... View the full answer

Intermediate Financial Management

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