What dividend growth rate would be required to produce a cost of equity capital of 8% when the common stock price is $140 per share and the dividend is $4.76 per share?
What will be an ideal response?
Let x = dividend growth rate
0.08 = 4.76/140 + x
x = 0.046 (4.6%)
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What will be an ideal response?
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Fill in the blank(s) with the appropriate word(s).