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View Full Version : Dividend Calculations


jmt002
Oct 20, 2010, 07:30 AM
Company stock is currently selling for $80 per share. The expected dividend one year from now is $4 and the required return is 13%. What is the company's dividend growth rate assuming that dividends are expected to grow at a constant rate forever?

Possible answers:
11%, 8%, 10% and 9% (need to show how I got the answer.

ArcSine
Oct 21, 2010, 05:29 AM
This forum has a similar requirement for homework questions... FIRST you show your efforts at working toward the answer, THEN you receive guidance.