Expected returns, dividends, and growth The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: P^0=(s1)b1 If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? Young companies with unpredictable earnings Mature companies with relattively predictable eamings All companies Waker utilitles is a dividend-paying company and is expected ta pay an annual dividend of 52.05 at the end of the year. les dividend is expected to grow at if constant rate of 6.00% per yeac. If Walter's stock cuirently trades for $29.00 per share, what is the expected rite of return? 9.47% 13.07% 6.07 6.494