Question: Answer is D but I dont know how to get it 25 Analysts expect Morgan Corp to make payouts of $7.22 billion at the end
Answer is D but I dont know how to get it
25 Analysts expect Morgan Corp to make payouts of $7.22 billion at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Morgan Corp's payouts will grow at a constant rate in perpetuity. Morgan Corp stockholders require a return of 9.5%. Morgan Corp has 3.17 billion shares outstanding and its shares are currently trading for $44.66. What growth rate has the market priced into Morgan Corp's share price? A) 0.025 B) 0.030 C) 0.042 D)*O.044 E) 0.055
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