Question: QUESTION 4 20 points VALA Matt is using dividend growth model to price common shares of DGM Inc which has just paid $1 of dividend

QUESTION 4 20 points VALA Matt is using dividend growth model to price common shares of DGM Inc which has just paid $1 of dividend this year. He finds that the price should be $20.4. DGM Inc has a beta of 2 and risk free rate is 3%. If return on the market portfolio is 5%, calculate the growth rate of dividends. Show your steps For the toolbar, press ALT F10 (PC) or ALTEN-F10 (Mac) BI us Paragraph Arial v 14px A 2 I. XOOQ ER x x . T * 2 . DE BBC BE (5) O WORDS POWERED BY TINY

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