Your client Gabe has a required rate of return of 10%. He recently purchased 2,000 shares of Strong Company International because of its strong earnings and reported dividends. Today, Strong Company International reported a share price of $42, and an increase in dividend to $3.75 per share. In order to see if the investment still meets Gabe’s requirements, he wants to know the implied growth rate of dividends for Strong Company International based on the Constant Growth Dividend Model. This model estimates the company’s dividend would grow at a constant rate of…