Duke Energy currently pays a dividend of about $1.64 per share and sells for $27 a share.
- If investors believe the growth rate of dividends is 3% per year, what rate of return do they expect to earn on the stock? 9.26
- If rate of return on the stock is 10%, what must be the growth rate they expect of the firm? My answer is .0370 which is wrong. I’m not sure what I did wrong.
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