The dividend is expected to grow at some constant rate g


ABC is expected to pay a dividend of $5.1 per share at the end of the year. The stock sells for $186 per share, and its required rate of return is 10.7%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?

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Financial Management: The dividend is expected to grow at some constant rate g
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