What is the expected constant-growth rate of dividends for a stock with a current price of $87,an expected dividend payment of $5.40 per share,and a required return of 16%?
A) 8.48%
B) 6.25%
C) 9.79%
D) 5.23%

Name: What is the expected constant-growth rate of dividends for a stock with a current price of $87,an expected dividend payment of $5.40 per share,and a required return of 16%? A) 8.48% B) 6.25% C) 9.79% D) 5.23%
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Quizplus · Accepted Answer

$87 = $5.40/(0.16 − g); g = 0.0979, or 9.79%

What Is the Expected Constant-Growth Rate of Dividends for a Stock