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Problem:

Tangshan China Companys stock is currently selling for $70.00 per share. The expected dividend one year from now (D1) is $2.00 and the required rate of return is 12%.

Required:

Question 1: What is Tangshans annual dividend growth rate (g), assuming that dividends are expected to grow at a constant rate forever?

Note: Show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162486

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