An analyst gathers the following information about a company and the economy:
Current share price: €36
P/E ratio: 22
Nominal risk-free rate: 2.5%
Risk premium: 6.0%
Expected retention rate: 60%
The best estimate of the company's dividend growth rate is:
Exam-Like
A
5.8%.
0.0%
B
6.7%.
50.0%
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C
7.4%.
50.0%
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An analyst gathers the following information about a company and the economy:
- Current share price: €36
- P/E ratio: 22
- Nominal risk-free rate: 2.5%
- Risk premium: 6.0%
- Expected retention rate: 60%
The best estimate of the company's dividend growth rate is: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz