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10. a. R&D Technology Corporation just paid a dividend of $0.50 per share out of earnings of $1 per share. Its current ROE is 10%.
10. a. R&D Technology Corporation just paid a dividend of $0.50 per share out of earnings of $1 per share. Its current ROE is 10%. Analysts expect its dividend to be $0.80 and $1.00 per year for the next two years, but they dont know what will be the long term grow rate. If the required rate of return in the stock is 16%, what is your estimated long term growth rate.?
B) . calculate the current value of the stock.
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