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Shack Diesel Company has stock trading today at $40.83 per share. The company just paid a...

Shack Diesel Company has stock trading today at $40.83 per share. The company just paid a $2.49 per share dividend. Kenny Smith, an analyst, believes investors should seek a 10.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions?

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Answer #1

с 1 price per share 2 recent dividend 3 required return 4 growth rate в 40.83 2.49 0.1 3.68%

1 price per share 2 recent dividend 3 required return 4 growth rate B 40.83 2.49 0.1 =((B1*B3)-B2)/(B2+B1)

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