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8-8 Constant Growth Rate, g A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per
8-8 Constant Growth Rate, g A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4) and is expected to grow at some constant rate g throughout time. The stocks required rate of return 14%(assume market is in equilibrium with the required rate return equal to the expected return) What is your forecast of g?
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