Hot Teas common stock is currently selling for $38.97. The last annual dividend paid was $1.26...
Homework Answers
ke = Market rate of return = 13.2%
P0 = 38.97
D0 = 1.26
ke = D0*(1+g)/P0 + g
0.132 = 1.26*(1+g)/38.97 + g
0.132 - g = (1.26/38.97)*(1+g)
0.132 - g = 0.03233*(1+g)
0.132 - g = 0.03233 + 0.03233(g)
0.09967 = 1.03233 (g)
g = 0.09967/1.03233 = 0.0965 = 9.65%
Answer : 9.65%
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Hot Teas common stock is currently selling for $38.97. The
last annual dividend paid was $1.26...
Please provide answer by hand and by BA III Plus calculator methods Hot Teas common stock...
Please provide answer by hand and by BA III Plus calculator methods Hot Teas common stock is currently selling for $38.97. The last annual dividend paid was $1.26 per share and the market rate of return is 13.2 percent. At what rate is the dividend growing? A) 9.65 percent B) 10.67 percent C) 12.79 percent D) 11.08 percent E) 12.10 percent
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