Final answer:
The expected growth rate of the dividend can be calculated using the Gordon Growth Model formula. In this case, the growth rate is approximately 7.14%.
Step-by-step explanation:
To calculate the expected growth rate of the dividend, we can use the Gordon Growth Model formula:
Growth Rate = (Dividend / Stock Price) - Rate of Return
In this case, the dividend is $1.68, the stock price is $23.52, and the required rate of return is 11.31%. Plugging these values into the formula, we get:
Growth Rate = ($1.68 / $23.52) - 0.1131
Growth Rate ≈ 0.0714, or 7.14%