SOLUTION: 1.43=1.05(1+g)4 trying to solve for g to give me the dividend growth rate. the answer in the book is .0803 I just forgot how to do this type of algebra.
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-> SOLUTION: 1.43=1.05(1+g)4 trying to solve for g to give me the dividend growth rate. the answer in the book is .0803 I just forgot how to do this type of algebra.
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Question 545062: 1.43=1.05(1+g)4 trying to solve for g to give me the dividend growth rate. the answer in the book is .0803 I just forgot how to do this type of algebra. Found 2 solutions by nerdybill, josmiceli:Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! 1.43=1.05(1+g)^4
1.43/1.05 = (1+g)^4
(1.43/1.05)^(1/4) = 1+g
(1.43/1.05)^(1/4) - 1 = g
0.08 = g
or
8% = g
You can put this solution on YOUR website! Use logs
I don't have a calculator right now, but you
will end up with: ( n is some number )
Change this to the form
Hope this helps
