Macy's Corporation next annual dividend is expected to be $0.76, and its current stock price is $55.25. Assuming the company's cost of equity capital is 8%, use the dividend discount valuation model to estimate the company's growth rate.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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O Macy's Corporation next annual dividend is expected to be $0.76, and its current stock price is $55.25. Assuming the company's cost of equity
-1 capital is 8%, use the dividend discount valuation model to estimate the company's growth rate.
2
13 a) 1.7%
14 b) 6.6%
15 c) 7.7%
16 d) 9.4%
17
Transcribed Image Text:9 O Macy's Corporation next annual dividend is expected to be $0.76, and its current stock price is $55.25. Assuming the company's cost of equity -1 capital is 8%, use the dividend discount valuation model to estimate the company's growth rate. 2 13 a) 1.7% 14 b) 6.6% 15 c) 7.7% 16 d) 9.4% 17
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