Today's dividend is $10. Expected rate of return in the market is 15% and the firm's growth

Question:

Today's dividend is $10. Expected rate of return in the market is 15% and the firm's growth rate is 12%. The firm pays out 10% of its growth as dividend. Comment on the key drivers affecting the stock price.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: