(Q20 IN TYPE B) WHAT IS THE IMPLIED CONSTANT GROWTH RATE OF DIVIDE...

20. (Q20 in Type B) What is the implied constant growth rate of dividends for a stock currently priced at $25, that just paid a dividend $2 per share, and has a yearly expected rate of return of 18%? A) 3.41% B) 9.26% C) 10.0% D) 13.5% Solution: B