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2. Stock Valuation Lauren Corp. will pay a dividend of $3.10 next year. The company has stated that it will maintain a constant growth
2. Stock Valuation Lauren Corp. will pay a dividend of $3.10 next year. The company has stated that it will maintain a constant growth rate of 4.2 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock? What if you want a return of 8 percent? What does this tell you about the relationship between the required return and the stock price?
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