The market price of a stock is $22.84 and it is expected to pay a dividend of $1.54 next year. The required rate of return is 11.37%. What is the expected growth rate of the dividend?

The correct answer is 4.63%.

Explanation:

According to the scenario, the given data are as follows:

Market price = $22.84

Expected dividend = $1.54

Rate of return = 11.37%

So, we can calculate the growth rate by using following formula:

Required return = ( Expected dividend ÷ Current price) + Growth rate

by putting the value we get,

11.37% = ( $1.54 ÷ $22.84) + Growth rate

11.37% = 0.0674 + Growth rate

Growth rate = 11.37% - 6.74%

Growth rate = 4.63%

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number