Question: Suppose that the current stock price and most recent annual dividend per share for a public firm are $24.25 and $1.10, respectively. The annual dividend

Suppose that the current stock price and most recent annual dividend per share for a public firm are $24.25 and $1.10, respectively. The annual dividend per share will grow at a constant rate. If the discount rate is 8.5%, the implied dividend growth rate is closest to:

3.12%

2.76%

3.79%

3.96%

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