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Assume that D 0 , which was just paid, = $ 1 . 0 0 , D 1 = $ 1 . 2 0 ,
Assume that D which was just paid, $ D $ D $ D $ D $ D $ D $ and P $ If the required return is then, based on this information and security valuation concepts, what should be the stock's expected value price today, ie P I encourage you to draw a time line clearly indicating the situation. Notation: Dt is Dividend at end of period t Pt is expected price at end of period t Answer to decimal places.
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