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( 2 points) After careful analysis, you have determined that a firm's dividends should grow at 2%(g), on average, in the foreseeable future. The firm's

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( 2 points) After careful analysis, you have determined that a firm's dividends should grow at 2%(g), on average, in the foreseeable future. The firm's last dividend was $1.50 (D0). Using Gordon growth model, compute the current price of this stock, assuming the required return is 5%(ke). Gordon growth model is P= D0 (1+g)/(keg)

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