What would the growth rate in dividends have, Finance Basics

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What would the growth rate in dividends have

Ameritech Corporation paid dividends per share of $3.56 in 1992, and dividends are expected to grow 5.5% a year forever. The stock has a beta of 0.90, and the Treasury bond rate is 6.25%. (Risk premium is 5.5 %.) The stock was trading for $80 per share. What would the growth rate in dividends have to be to justify this price?

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Finance Basics: What would the growth rate in dividends have

Reference No:- TGS0729694

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Recent Questions Asked Finance Basics

Q : Discuss the most recent dividend per share

Q : What is at and t average wage or salary paid

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Q : What is the value per share using the stable growth model

Q : What would the growth rate in dividends have

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What would the growth rate in dividends have

Reference No:- TGS0729694

Recent Questions Asked Finance Basics

Q : Discuss the most recent dividend per share

Q : What is at and t average wage or salary paid

Q : What is the net present value of this lockbox arrangement

Q : What is the value per share using the stable growth model

Q : What would the growth rate in dividends have

Q : Calculate the fords weighted average cost of capital

Q : Calculate how much money will you invest in stock x

Q : What is the rate of return on the fund

Q : What are the depreciation expenses associated with machine

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