Question
The common stock of Darkover Inc. just paid an annual dividend of $1.00. The dividend is expected to grow at a constant rate forever. The
The common stock of Darkover Inc. just paid an annual dividend of $1.00. The dividend is expected to grow at a constant rate forever. The required rate of return for this stock is 8.4 percent. If the current price of the stock is $ 78.49 what is the expected growth rate of the dividends?
I calculated 7.13%
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
