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

question 104

Multiple Choice

What constant-growth rate in dividends is expected for a stock valued at $32.40 if next year's dividend is forecast at $2.20 and the appropriate discount rate is 13.6%?

• A) 7.02%
• B) 6.59%
• C) 6.81%
• D) 7.38%

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