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A share of stock is expected to pay a dividend of 2 one year from now and a dividend of 3 two years from now.
A share of stock is expected to pay a dividend of 2 one year from now and a dividend of 3 two years from now.
Thereafter, it is expected that dividends will be paid annually, with each dividend being g% greater than the previous one.
The stock is valued at 112.50 using the dividend discount model with an annual effective rate of return of 8.5%. Find g.
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