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Assume that a share of stock is expected to pay a dividend ( D 1 ) of $ 2 . 5 0 per share, has
Assume that a share of stock is expected to pay a dividend of $ per share, has a required rate of return of percent, and has a constant dividend growth rate of percent. Also assume that the stock's price is in equilibrium so that expected rates are equal to required rates of return. Given this information, determine what percentage of the stocks current price value is derived from the dividends expected to be received in Years
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