mummy_1947
Oct 10, 2007, 10:22 AM
Investors expect the following series of dividends from a particular stock:
Year one $1.10
Year two $1.25
Year three $1.45
Year four $1.60
Year five $1.75
After the fifth year, dividends will grow at a constant rate. If the required rate of return on this stock is $ 9% and the current market price is $45.64, What is the long term rate of dividend growth expected by the market ?
Year one $1.10
Year two $1.25
Year three $1.45
Year four $1.60
Year five $1.75
After the fifth year, dividends will grow at a constant rate. If the required rate of return on this stock is $ 9% and the current market price is $45.64, What is the long term rate of dividend growth expected by the market ?