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Arci has expected earnings per share of $10 for the next year. It has been paying out 25% of its earnings to its shareholders as
Arci has expected earnings per share of $10 for the next year. It has been paying out 25% of its earnings to its shareholders as dividends and will continue to keep that practice. The market capitalization rate for arci is 10%,and the expected rate of return for future investment is 12% per year. Based on the constant growth rate discounted dividend model, answe: A) expected growth rate of dividends B) the models estimate of the present value of the stock C) expected price of a share one year from now D) if the inflation rate adds up by 1% , the market capitalization rate for arci increases to 11% and everything else remains the same then what is the estimated stock price
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