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.)

Question

asked Oct 10, 2022 54.9k views

1 Answer

Amy McCrobie · Answer 1 · 2022-10-14T08:03:33+0000

Answer:

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.