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(Expected dividend growth rate) Suppose that MTA is expected to pay $4.00 in cash dividends next year at the rate of $1.00 per quarter and
(Expected dividend growth rate) Suppose that MTA is expected to pay $4.00 in cash dividends next year at the rate of $1.00 per quarter and that the required return on MTA stock is 14%. If MTA is currently selling for $37.50 per share, what is the expected growth rate in dividends for MTA based on the constant growth model?
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