Question: How do you calculate the implied growth rate for a stock that is currently priced in equilibrium and the dividend will grow at a constant
How do you calculate the implied growth rate for a stock that is currently priced in equilibrium and the dividend will grow at a constant rate? Last Dividend per Share = $5 Beta for the Stock = 1.0 Risk Free Rate = 4% Market Risk Premium = 6% Current Market Price = $80 Please show the calculations (Excel formulas preferable) so I can learn how the growth rate is calculated.
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