Richtex Brick has a current dividend of $1.70 and the market value of its common stock is $28. The expected market return is 13 percent and the risk-free rate is 9 percent. If Richtex stock is half as volatile as the market, and the market is in equilibrium, what rate of growth is expected for Richtex’s dividends assuming a constant growth valuation model is appropriate for Richtex?
If Richtex stock is half as volatile as the market, and the market is in equilibrium, what rate of growth is expected for Richtex’s dividends assuming a constant growth valuation model is appropriate for Richtex?
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