growth rate

[jlg2332]

a company's common stock is expected to pay a dividend of $3.50 next years, dividends are growing at 3% per year, and the stock is currently trading for $25 per share. a manager has indicated that if the company were to defer the dividend for 1 yr, the company could invest the cash in projects that accelerate dividend growth. assuming that if the firm defers divdends, they will reinitiate the dividend sequence with a $3.50 payment in 2 yrs, what would be the minimum acceptable new growth rate? what new growth rate would keep existing stockholders content?

[dzug]

Sounds like the answers to your questions are totally subjective, given the use of gthe word'acceptable'.