high energy (HE) company

high energy (HE) company

high energy (HE) company recently paid a $2 per share dividend, which is expected to grow at a constant rate forever. HE`s stock, which has a beta coefficient equal to 1.1, is sellinf for $37.50 per share. currently, the risk free rate of reurn is 4 percent, and the return on an average stock is 10 percent. if HE`s stock is selling at its equilibrium price, what is its growth rate?

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