Constant growth rate g a stock is trading at 85 per share, Financial Management

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Constant growth rate g a stock is trading at 85 per share

Constant Growth Rate, g A stock is trading at $85 per share. The stock is expected to have a year-end dividend of $6 per share (D1 = $6), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 11% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? Round the answer to three decimal places.

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Financial Management: Constant growth rate g a stock is trading at 85 per share

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Financial Management: Constant growth rate g a stock is trading at 85 per share

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