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Posted by: johnsonj
Price Quoted by Student: $1
Posted On: 2011-07-07 07:07:12
 
Question

B13. (Expected dividend growth rate) Suppose that MTA is expected to pay $4.00 in cash dividends

next year at the rate of $1.00 per quarter and that the required return on MTA stock

is 14%. If MTA is currently selling for $37.50 per share, what is the expected growth rate

in dividends for MTA based on the constant growth model?



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