Bavarian Sausage is expected to pay a $1.57 dividend next year.If the required return on the stock investment is 14%,and the stock currently sells for $34.37,what is the implied dividend growth rate for this company?

Name: Bavarian Sausage is expected to pay a $1.57 dividend next year.If the required return on the stock investment is 14%,and the stock currently sells for $34.37,what is the implied dividend growth rate for this company?
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Question

Quizplus · Accepted Answer

34.37 = 1.57/(.14-g)
g = .0943

Bavarian Sausage Is Expected to Pay a $1