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A stock has a price ( i . e . , present value of all cash flows from the stock expected by investors ) of
A stock has a price ie present value of all cash flows from the stock expected by investors of $ today. It is expected to pay a dividend of $ per share next year, $ per share in the following year, $ in the subsequent years ie pay a dividend of $ in years through year into the future and then be sold for $ in years where that $ represents the present value of all dividends expected after years Compute the interest rate or expected return on this stock ie iterate to find the that sets the sum of the present value of the future expected cash flows equal to the $ present value SHOW ALL WORK with labels of r and c and t
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