What Constant-Growth Rate in Dividends Is Expected for a Stock

question 29

Multiple Choice

What constant-growth rate in dividends is expected for a stock valued at $32.00 if next year's dividend is forecast at $2.00 and the appropriate discount rate is 13%?

• A) 5.00%
• B) 6.25%
• C) 6.75%
• D) 15.38%

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