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Carnes Cosmetics Co.'s stock price is $51, and it recently paid a $2.50 dividend. This dividend...

Carnes Cosmetics Co.'s stock price is $51, and it recently paid a $2.50 dividend. This dividend is expected to grow by 17% for the next 3 years, then grow forever at a constant rate, g; and rs= 12%. At what constant rate is the stock price expected to grow after year 3? Do not round intermediate calculations. Round your answer to two decimal places.

________%?

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Answer #1

Hence, Constant growth rate is 5.01%

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