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1.A stock will pay a dividend of $4 in one year and increase 5% every year after that. Its required rate of return is 19%.
1.A stock will pay a dividend of $4 in one year and increase 5% every year after that. Its required rate of return is 19%. What is the value of the stock?
2. What is another name for the cost of equity capital?
Capital Return
Dividend Yield
Return on Equity
Capitalization Rate
3. A stock will pay dividends of $2, $5, and $10 over the next three years, and then increase dividends at a rate of 4% afterwards. Its required rate of return is 16%. What is the value of the stock?
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