27". A firm will pay a dividend of $13 one year fionl today and $5.00 two years flora today (that is, D1 = $13 and D; = EDD). Thereafler, the dividend is expected to grow at a constant rate forever. The price of this stock today is $1130 and the required rate of return on the stock is lfl%. What is the expected constant growth rate of the dividend stream fi’onl year 2 to infinity?
27". A firm will pay a dividend of $13 one year fionl today and $5.00 two years flora today (that is, D1 = $13
and D; = EDD). Thereafler, the dividend is expected to grow at a constant rate forever. The price of this
stock today is $1130 and the required rate of return on the stock is lfl%. What is the expected constant
growth rate of the dividend stream fi’onl year 2 to infinity?