Ask Question
Today, 05:36

Dry Dock Marina is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total return of 9.48 percent. What is the dividend growth rate?

+2
Answers (1)
  1. Today, 09:35
    0
    0.95%

    Explanation:

    Data provided in the question

    Annual dividend = $1.58

    Price of the stock = $18.53

    Total return = 9.48%

    The computation of the dividend growth rate is shown below:

    Price of the stock = Annual dividend : (Required rate of return - growth rate)

    $18.53 = $1.58 : (9.48% - growth rate)

    After solving this, the growth rate is 0.95%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Dry Dock Marina is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total return of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers