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An investor is analyzing a stock using the constant growth dividend discount model. The equity currently trades at $10 and is expected to pay a
An investor is analyzing a stock using the constant growth dividend discount model. The equity currently trades at $10 and is expected to pay a dividend of $2. The investors required rate of return is 8%. Compute the implied growth rate:
A.2%
B.4%
C.6%
D.8%
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