question archive calculate growth rate if current dividend is $4

calculate growth rate if current dividend is $4

Subject:FinancePrice:2.86 Bought25

calculate growth rate if current dividend is $4.8, required rate of return is 16% and share market price is $67.14. please give complete steps and better no to use excel or financial calculator.

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Required return=(D1/Current price)+Growth rate

0.16=[(4.8*(1+g)/67.14]+g

0.16=[(4.8+4.8 g)/67.14]+g

0.16=0.0714924039+0.0714924039 g+g

g=(0.16-0.0714924039)/(0.0714924039+1)

=8.26%(Approx)

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