Ask Question
14 October, 10:35

Dry Dock Marina is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total return of 9.48 percent. What is the dividend growth rate?

+4
Answers (1)
  1. 14 October, 13:04
    0
    0.95%

    Explanation:

    Data provided in the question

    Annual dividend = $1.58

    Price of the stock = $18.53

    Total return = 9.48%

    The computation of the dividend growth rate is shown below:

    Price of the stock = Annual dividend : (Required rate of return - growth rate)

    $18.53 = $1.58 : (9.48% - growth rate)

    After solving this, the growth rate is 0.95%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dry Dock Marina is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total return of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers