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A stock is expected to pay a year-end dividend of $2.00, i.e., D 1 - $2.00. The dividend is expected to decline at a rate

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A stock is expected to pay a year-end dividend of $2.00, i.e., D 1 - $2.00. The dividend is expected to decline at a rate of 5% a year forever (8 - -5%). if the company is in equilibrium and its expected and required rate of return is 15%, which of the following statements is CORRECT

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