Assume the latest dividend per share, paid recently, for ACD Ltd is 90 cents and that the
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Question:
Assume the latest dividend per share, paid recently, for ACD Ltd is 90 cents and that the required rate of return on these shares is 15% p.a. If the current share price is $19.80, the expected growth rate on these shares is:
Obvisouly the the general formula for a question like this is Po = Dt / ke-g --> However in my case we've got the value
Is the formula then dt/po - ke
Which then equates to 0.9 / 19.8 - 0.15 = -0.104 or 10% sorry just confused
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