Answer:
Dividend growth rate anticipated = 14.66%
Step-by-step explanation:
Using dividend growth model we have
P
=

Where P
= Current market price = $120
D
= Dividend to be paid at year end or next year = $1.37
K
= Expected return on equity = 15.8%
g = Expected growth rate
Now putting values we have
$120 =

0.158 - g =

0.158 - 0.0114 = g
0.1466 = g = 14.66%