What is the growth rate of the dividend in period three

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Problem 1: Consider a stock that will have dividends in the next three periods of $1.34, $1.61, and $1.67, respectively. The interest rate is 12%. What is the growth rate of the dividend in period 3? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Problem 2: Stark Industries expects an earnings per share of $2.8 and reinvests 45% of its earnings. Management projects a rate of return of 2% on new projects and investors expect a 9% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM132912986

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