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A stock analyst finds a value of a stock today (V 0 ) using the dividend discount model (DDM) with constant growth. The analyst calculates

A stock analyst finds a value of a stock today (V0) using the dividend discount model (DDM) with constant growth. The analyst calculates a value of V0 = $83.33/share. The analyst's forecast of the stock price 10 years from today (V10) is $111.99/share. What is the analyst's assumption about the growth rate (g) in dividends per share?

g = 1.44%

g = 4%

g = 3%

g = 5%

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