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3. A firm currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of its shares based
3. A firm currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of its shares based on the constant-growth dividend discount model is $32.03, what is the discount rate? 4. Suppose that the current price and the most recent dividend for a firm are $24.25 and $1.10, respectively. If the discount rate on the stock is 8.5%, what is the implied growth rate
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