What is the stock’s constant growth rate

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Reference no: EM13978852

Healthy Supplies, an investor-owned healthcare supply chain, just paid a dividend (D0) of $4.57 per share. The current price of the stock (P0) is $43 per share. The firm’s required rate of return is 12%.

What is the stock’s constant growth rate?

How does the expected growth rate change if the required rate of return drops to 9%?

Using the expected growth rate calculated in a, what is the company’s stock price in 10 years?

Reference no: EM13978852

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