Problem:
A company's current stock price is $15.5, and this company has just paid a dividend of $1 per share. The dividends are expected to grow at a constant rate in the future. The company's beta is 1.15, the return on the market is expected to be 11%, and the risk-free rate is 4%.
Requirement:
Question: What is the company's constant growth rate?
Note: Please provide step by step solution.