Problem 7-10 Growth Rates [LO 1]
The stock price of Baskett Co. is $54.30. Investors require a return of 13 percent on similar stocks.
If the company plans to pay a dividend of $3.80 next year, what growth rate is expected for the company’s stock price? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Growth rate %