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An analyst determines that a company has a return on equity of 16% and pays 40% of its earnings in dividends. If the firm recently
An analyst determines that a company has a return on equity of 16% and pays 40% of its earnings in dividends. If the firm recently paid a $1.50 dividend and the stock is selling for $40, what is the required rate of return on the stock if it priced according to the dividend discount model? 13.7 102
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