Stock is expected to have year-end dividend

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Reference no: EM131597455

A stock is trading at $ 41 .00 per share. The stock is expected to have a year-end dividend of $ 2.7 0 per share (D₁), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12 percent. If you are an analyst who believes in efficient markets, what is your forecast of g? Answer in a percentage without the % sign, and round it to two decimal places, i.e., 10.54 for 10.54% (or 0.1054).

Reference no: EM131597455

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