Sidman Products's common stock currently sells for $42 a share. The firm is expected to earn $4.20 per share this year and to pay a year-end dividend of $2.30, and it finances only with common equity If investors require a 10% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places.   %

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter9: The Cost Of Capital
Section: Chapter Questions
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Sidman Products's common stock currently sells for $42 a share. The firm is expected to earn $4.20 per share this year and to pay a year-end dividend of $2.30, and it finances only with common equity

If investors require a 10% return, what is the expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places.

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