Gay Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D₁ = $1.25).The stock sells for $32.50 per share,and its required rate of return is 10.5%.The dividend is expected to grow at some constant rate,g,forever.What is the equilibrium expected growth rate?

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The Answer of Gay Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D₁ = $1.25).The stock sells for $32.50 per share,and its required rate of return is 10.5%.The dividend is expected to grow at some constant rate,g,forever.What is the equilibrium expected growth rate?

Gay Manufacturing Is Expected to Pay a Dividend of $1