ramentome7542
ramentome7542
18.02.2021 • 
Business

A firm has paid today its annual dividend equal to 0.75 Euros per share. The annual EPS is equal to 3 Euros. The firm has also announced that the dividend for next year is going to increase 1.5%. At closing time, the share price today was 36 Euros. The required rate of return to invest in this firm adjusted for its level of risk is 6%. Compute the rate of growth of dividends expected by the market for the years after the next year. Select one or more:

a. Between 3.85% and 3.90%

b. Between 3.10% and 3.15%

c. Between 3.25% and 3.30%

d. Between 3.55% and 3.60%

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