Question
The common stock of Barr Labs Inc., trades for $110 PER SHARE. Investors expect the company to pay a(n) $1.27 dividend next year, and they
The common stock of Barr Labs Inc., trades for $110 PER SHARE. Investors expect the company to pay a(n) $1.27 dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a 13.3% return on this stock, what is the dividend growth rate that they are anticipating?
The anticipated dividend growth rate is_____%
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
