Shack Diesel Company has stock trading today at $40.74 per share. The company just paid a $2.30 per share dividend. Kenny Smith, an analyst, believes investors should seek a 12.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Shack Diesel Company has stock trading today at S40 74 per share. The company just paid a $2.30 per share dividend. Kenny Smith, an analyst, believes investors should seek a 12.00% return to hold the stock. If we value Shack Diesel using the constant growth model what dividend growth rate would justify these assumptions? Submit Answer format: Percentage Round to 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))