Homework SourseDelphins Marina is expected to pay an annual dividend of 058
Delphin\'s Marina is expected to pay an annual dividend of $0.58 next year. The stock is selling for $8.53 a share and has a total return of 12 percent. What is the dividend growth rate?
| 3.82 percent | |
| 4.03 percent | |
| 4.28 percent | |
| 5.20 percent | |
| 5.49 percent |
Solution
answer is 5.20 percent
g = 0.12 - ($0.58/$8.53) = 5.20 percent
