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A company just paid a dividend of 2.25% per share. The company will increase its dividend by 20 percent next year and will reduce its
A company just paid a dividend of 2.25% per share. The company will increase its dividend by 20 percent next year and will reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth. At this point the company will keep a constant growth rate forever. Suppose the curren share price for the firm is %39.52, what is the rate of return that investors arerequiring
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