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Tootsie Roll Inc. pays annual dividends that are expected to grow in perpetuity at a constant rate. The last dividend (paid yesterday) was $0.5.
Tootsie Roll Inc. pays annual dividends that are expected to grow in perpetuity at a constant rate. The last dividend (paid yesterday) was $0.5. The price of Tootsie Roll shares is currently $34. Tootsie Roll investors require a return of 12%. What growth rate of dividends is priced into the stock? Express your answer in percentage form rounded to one decimal place.
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
