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    jmt002's Avatar
    jmt002 Posts: 2, Reputation: 1
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    #1

    Oct 20, 2010, 07:30 AM
    Dividend Calculations
    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's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    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.

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