Stars Ltd is expected to pay a dividend of $0.80 one year from now. Its share price today is $24 and the required rate of return is 12% p.a. Using the constant growth model, calculate the annual growth rate of the dividend. Round your answer to the nearest 0.01%
Stars Ltd is expected to pay a dividend of $0.80 one year from now. Its share price today is $24 and the required rate of return is 12% p.a. Using the constant growth model, calculate the annual growth rate of the dividend. Round your answer to the nearest 0.01%
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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