A manufacturing company is expected to pay a dividend of br. 1.25 per share at the end of the year (D1=br.1.25). The stock sells for br. 32.50 per share and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate forever. What is the growth rate

the equilibrium expected growth rate is 6.65%

Step by step Explanation:

We were given stock sold per share of $32.50

Dividend per share =$1.25

Required Return rate = 10.5%

Then we can calculate Percentage of Dividend for share as;

dividend of br. 1.25 per share at the end of the year (D1=br.1.25)

= 1.25×100= 125

Let the dividend percentage = y

stock sold per share × y= 125

125= 32.50y

y = 125/32.50

y= 3.85

y= 3.85*100%

Then the Dividend percentage = 3.85%

Growth rate=(required rate of return -Dividend percentage)

= 10.5 - 3.85 = 6.65

Therefore, the equilibrium expected growth rate is 6.65%

(sin 42)/31. = sinx)/37

sinx = 37 (sin42)/31

= 37× 0.66/31 = 0.787

x= 51.9

other angle opposite to y = 180-51.9-42

= 180- 93.9 =86.1

so

sin42)/31 = sin 86.1)/y

0.021 = 0.997 /y

y= 0.997/0.021 =47.47