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You are expecting LFP Inc, to pay a dividend of $2.52 next year. You estimate the...

You are expecting LFP Inc, to pay a dividend of $2.52 next year. You estimate the price of LFP to be $36.54. You agree with the consensus estimate of 8% for the required rate of return. This means your expected growth rate is what percent?

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Answer #1
Price = Dividend in 1 year/(cost of equity - growth rate)
36.54 = 2.52/ (0.08 - Growth rate)
Growth rate% = 1.1
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