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Homework answers / question archive / PPG has the following dividend information
PPG has the following dividend information. Calculate the annual growth and average growth rate. The stock beta is 1.12, the risk free rate is 1% and the market risk premium is 8%. What is the rs? What is the value of one share of PPG stock? BKH Divs % Change 2015 1.41 2016 1.56 2017 1.70 2018 1.86 2019 1.98 Average
Annual Growth Rate:
| BKH | DIVIDEND | % CHANGE |
| 2015 | 1.41 | - |
| 2016 | 1.56 | 10.64% |
| 2017 | 1.70 | 8.97% |
| 2018 | 1.86 | 9.41% |
| 2019 | 1.98 | 6.45% |
Average Growth Rate :
Dividend Last Year = Dividend Base Year (1+g)n-1
1.98 = 1.41 (1+g)5-1
1.98 = 1.41 (1+g)4
(1+g)4= 1.98/1.41
please see the attached file for the complete solution
