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An investor observes a stock that is currently trading at $220 on a major stock exchange. The investor expects the stock to pay a dividend
An investor observes a stock that is currently trading at $220 on a major stock exchange. The investor expects the stock to pay a dividend of $0.88 next year. Additionally, the investor expects the dividend will be paid every year and will grow at a constant rate indefinitely. Assuming a required rate of return of 10%, what is the dividend growth rate implied by the current prices of the stock
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