Question
Gay Manufacturing is expected to pay a dividend of $2.50 per share at the end of the year (D 1 = $2.50). The current stock
Gay Manufacturing is expected to pay a dividend of $2.50 per share at the end of the year (D1 = $2.50). The current stock price is $80 per share, and its required rate of return is 6%. The dividend is expected to grow at some constant rate, g, forever. What is the dividend growth rate?
| 2.88% | ||
| 3.13% | ||
| 2.95% | ||
| 3.33% | ||
| 6.00% |
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Finance For Small And Entrepreneurial Business
Authors: Richard Roberts
1st Edition
0415721008, 978-0415721004
