Calculate the dividend growth rate of mt 217 for constant

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Reference no: EM131142098

Once this task is complete, calculate the expected growth rate using the Constant Growth (or Gordon Growth) Model. 
Calculate the Dividend Growth Rate of MT 217 for Constant Growth Model (CGM)

We use actual MT 217 history

PV.................................................................. ($1.29) Dividend paid in 2002

FV ....................................................................$1.63 Dividend Paid in 2008

n ....................................................................................................................6

PMT ..............................................................................................................0

Rate.....................................? This will be the Dividend Growth Rate . = g

Constant Growth Model

P0 = D1 / r – g

Reference no: EM131142098

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