Solved: Determine expected growth rate of dividends, Financial Accounting

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Determine expected growth rate of dividends

Response to the following problem:

Arts and Crafts, Inc., will pay a dividend of $4 per share in 1 year. It sells at $50 a share and firms in the same industry provide an expected rate of return of 15%. What must be the expected growth rate of the companys dividends? (Do not round intermediate calculations.)

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Financial Accounting: Determine expected growth rate of dividends

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