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4. American Airlines shares are currently selling for $16.86 and have paid a dividend of $.40 per share for the most recent year. The following

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4. American Airlines shares are currently selling for $16.86 and have paid a dividend of $.40 per share for the most recent year. The following additional information is given: The risk-free rate is 2.36 percent, The shares have an estimated beta of 1.2; and The equity risk premium is estimated at 6 percent. Based on the above information, determine the constant dividend growth rate that would be required to justify the market price of $16.86. (5 points)

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