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Apply the constant growth model (P = D1/R - g to value the stock(exxon gas station) . You can find the required return by manipulating
- Apply the constant growth model (P = D1/R - g to value the stock(exxon gas station) . You can find the required return by manipulating the constant growth model as follows: R = D1/P + O P= the current price of the stock D1 = the next dividend D0 (1 + g) R= the required return g= the growth rate of the dividend
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