Question: ( b ) ZYX Co has had dividends grow from K 2 . 0 0 per share to K 4 . 0 0 per share

(b) ZYX Co has had dividends grow from K 2.00 per share to K 4.00 per share over the last 10 years (the K4.00 per share dividend was paid yesterday). This compounded annual growth rate in dividends is expected to continue well into the foreseeable future. If the current market price ZYX's stock is K18.00 per share, what rate of return do investors expect to receive from buying ZYX stock?
(10 marks)
( b ) ZYX Co has had dividends grow from K 2 . 0

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