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Xytex Products just paid a dividend of $2.47 per share, and the stock currently sells for...

Xytex Products just paid a dividend of $2.47 per share, and the stock currently sells for $48. If the discount rate is 12 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Answer #1
Dividend growth rate (g) (P0×r-D0)÷(P0+D0)
Here,
Stock price (P0) $                                       48.00
Recent dividend (D0) $                                          2.47
Required return ( r) 12.00%
Dividend growth rate (g) 6.52%
(48×12%-2.47)÷(48+2.47)
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