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erma4kov [3.2K]
3 years ago
8

Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27

.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Business
1 answer:
natali 33 [55]3 years ago
4 0

Answer:

5.95%.

Explanation:

Expected dividend (D1) $1.25

Stock price $27.50

Required return 10.5%

Dividend yield 4.55%

Growth rate = rS - D1/P0 = 5.95%.

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In United states, you're inclined to pay around 28 % from the total capital gain as Capital Gain Tax</span>
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umka2103 [35]

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Gulshan Parvana operates a machine shop in Istanbul, Turkey. She places bids on small projects in the metropolitan area. Which o
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