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10. A firm will pay a dividend next year of $2.20 the dividend is expected to increase each year forever by 3%, your required rate
10. A firm will pay a dividend next year of $2.20 the dividend is expected to increase each year forever by 3%, your required rate of return is 13% how much would you pay for one share of the stock? Use the formula for the constant growth model given below. P0 = D1 / (k g)
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