Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
Question
Given the following data, what is the stocks expected growth
rate according to the Gordon model? Dividend per share just
paid: $4.5 Current market price: $40 Required rate of return:
15 Assume the stock is priced in equillibrium. Select one. a
.0412 b. .0337 c. 0612 d. .0553
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Transcribed Image Text:Given the following data, what is the stocks expected growth rate according to the Gordon model? Dividend per share just paid: $4.5 Current market price: $40 Required rate of return: 15 Assume the stock is priced in equillibrium. Select one. a .0412 b. .0337 c. 0612 d. .0553
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