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ASSIST ASAP!!! Using a constant growth dividend model, what growth rate in dividends...

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Finance

ASSIST ASAP!!!

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  1. Using a constant growth dividend model, what growth rate in dividends is implied by the current share price of $44.48? How does this growth rate compare with rates implied from consensus analyst forecasts in case Exhibit 8? Use the following assumptions to calculate the growth rate:
    1. Required return is 8%
    2. Constant growth rate is 3%
EXHIBIT 8: HARLEY-DAVIDSON INC. CONSENSUS FORECASTS, 2018-2023 (US$) LTM Consensus for 12 Months Ending July 1, July 1, July 1, July 1, July 1, July 1, 2018 2019 2020 2021 2022 2023 2.92 3.18 3.56 4.06 4.34 4.65 Earnings per Share Dividends per Share 1.47 1.50 1.56 1.80 1.95 2.10 Note: LTM = last 12 months. Source: Harley-Davidson Inc., "Consensus Forecasts for Harley-Davidson, Inc.," Institutional Brokers' Estimate System, accessed July 29, 2019. EXHIBIT 8: HARLEY-DAVIDSON INC. CONSENSUS FORECASTS, 2018-2023 (US$) LTM Consensus for 12 Months Ending July 1, July 1, July 1, July 1, July 1, July 1, 2018 2019 2020 2021 2022 2023 2.92 3.18 3.56 4.06 4.34 4.65 Earnings per Share Dividends per Share 1.47 1.50 1.56 1.80 1.95 2.10 Note: LTM = last 12 months. Source: Harley-Davidson Inc., "Consensus Forecasts for Harley-Davidson, Inc.," Institutional Brokers' Estimate System, accessed July 29, 2019

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