Question
The estimated aggregate dividend payments on S&P 500 index in the next 12 months is $60. The current value of the S&P500 index is $2400.
The estimated aggregate dividend payments on S&P 500 index in the next 12 months is $60. The current value of the S&P500 index is $2400. If these dividends are anticipated to grow at 4% perpetuity, what is the implied required return on the S&P 500, assuming market is in equilibrium.
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Business Statistics In Practice
Authors: Bruce Bowerman, Richard O'Connell
6th Edition
0073401838, 978-0073401836
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