CFA Level 1 Exam
Question No. 1
A portfolio manager with Mally, Feasance, & Company is examining shares of Melton Industries, a large
industrial firm. Assume the following information:
Annual Dividend: $0.70
Tax Rate: 35%
Discount Rate: 13.15%
Using this information, what is the expected growth rate of this firm? Assume that the discount rate, tax rate, and ROE are expected to remain stable.
Choose the correct option from the given list.
01 / 3959