Question
Yesterday, Dos Amigos Trucking Services Inc. (DOTS Inc) announced an $8 dividend to be paid in one year's time (this is their first dividend). It
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Yesterday, Dos Amigos Trucking Services Inc. (DOTS Inc) announced an $8 dividend to be paid in one year's time (this is their first dividend). It also announced that it intends to pay dividends on a quarterly basis thereafter. If the current price of DOTS is $182 and the effective annual required return on DOTS is 22%, what is the (constant) quarterly dividend growth rate consistent with the current stock price?
Yesterday, Dos Amigos Trucking Services Inc. (DOTS Inc) announced an $8 dividend to be paid in one year's time (this is their first dividend). It also announced that it intends to pay dividends on a quarterly basis thereafter. If the current price of DOTS is $182 and the effective annual required return on DOTS is 22%, what is the (constant) quarterly dividend growth rate consistent with the current stock price?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
