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samualson samualson
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4 years ago
Distant Thunder, Inc. paid a dividend of $5.00 per share on its common stock yesterday. Dividends are expected to grow at a constant rate of 10% for the next two years, at which point the dividends will begin to grow at a constant rate indefinitely. If the stock is selling for $50 today and the required return is 15%, what it the expected annual dividend growth rate after year two?
A) 3.365%
B) 3.878%
C) 4.556%
D) 5.000%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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DeanaRayDeanaRay
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samualson Author
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#2
4 years ago
Such an awesome helper!
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#3
2 years ago
thanks
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#4
2 years ago
Thanks!
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