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Assume that you are valuing RX stock and using the constant growth model, assuming a required rate of return or discount rate of 8% and
Assume that you are valuing RX stock and using the constant growth model, assuming a required rate of return or discount rate of 8% and current dividend of $1.50. You have a choice of three growth rates to use. The growth rates are 7.5%, 6.9%, and 9.25%. Compute the stock value of using all three growth rates. (Hint: calculate D1 & use the proper formula)
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