Question

Calculate the average growth rate. (Enter your answer as a percentage, rounded to 2 decimal places, using intermediate calculations rounded to at least 4 decimal places.)

Answer 1

Growth rate is 6%

Step-by-step explanation:

Po =
`(D1)/(r-g)`

P = 0.3 / (0.1 - 0.06)

P = $75

Dividend growth model is used to calculate the stock price based on the dividend growth.