Shack Diesel Company has stock trading today at $40.36 per share. The company just paid a $2.57 per share dividend. Kenny Smith, an analyst, believes investors should seek a 11.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions?
Shack Diesel Company has stock trading today
at $40.36 per share. The company just paid a $2.57 per share dividend. Kenny Smith, an analyst, believes investors should seek a 11.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions?
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