CFA assessments Equity - Green Snacks "implied long-term dividend growth rate is"

[Rasec]

can someone tell me what in the world are they doing in PROBLEM #4!

 

[SpankMasterFlex]

Ya, that’s kind of tricky. Don’t comllcate it too much. It’s just the GGM. Plug the variables. They give you r. The dividend is just the dividend payout x EPS. The price can be determined by taking the dividend and dividing by the dividend yield. Plug it and solve!