Constant growth rate-equilibrium with the required return

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Reference no: EM131309002

Constant Growth Rate, g A stock is trading at $65 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? Round the answer to three decimal places. %

Reference no: EM131309002

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