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2. The initial dividends per share of common stock of MM Ltd. are $1.2. The growth rate of the dividends stream is expected to be
2. The initial dividends per share of common stock of MM Ltd. are $1.2. The growth rate of the dividends stream is expected to be 1.5% per quarter into indefinite future. The required quarterly rate of return on MM's common stock is 2.5%. Assume efficient financial markets and calculate the net present value of buying 100 shares of the common stock. Also, calculate the excess rate of return on your investment
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