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Mattel, Inc. was trading at a price of $30.23 per common share at December 31, 2015. Using the Gordon growth model, estimate the markets expected
Mattel, Inc. was trading at a price of $30.23 per common share at December 31, 2015. Using the Gordon growth model, estimate the markets expected growth in dividends that is required to yield the $30.23 price per common share. Assume that the current dividend per share is $1.52 and is expected to grow thereafter, and that the cost of equity capital is 8.0%.
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