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What is the implied growth rate of the Federal Express dividend based on the constant...

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Finance

What is the implied growth rate of the Federal Express dividend based on the constant growth dividend discount model?

Assume the Johnsons required rate of return is 11.4% and the price is 5000 for 100 shares. Current dividend is 3.40, show your steps

Hint: V = D1/(r - g)

D1 = D0(1+g)

Solving for g

Answer & Explanation Solved by verified expert
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