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Acme Corporations dividends have been growing, and will continue to grow, at a constant rate, g. Three years ago, the dividend paid was D -3

  1. Acme Corporations dividends have been growing, and will continue to grow, at a constant rate, g. Three years ago, the dividend paid was D-3 = $4 and the most recent dividend paid (three years later) was D0 = $3.4295. Based on your knowledge of these two dividends, calculate the constant dividend growth rate, g.

    5.545%

    5.263%

    5.263%

    5.00%

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