Bay manufacturing is expected to pay a dividend of 125 per


Bay Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D = $1.25). The stock sells for $21.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

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Mathematics: Bay manufacturing is expected to pay a dividend of 125 per
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