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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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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:

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