Question
Assume the firm's dividend payment this year is $3.28, and that the required rate of return for the firm's industry is 10.1%. If the
Assume the firm's dividend payment this year is $3.28, and that the required rate of return for the firm's industry is 10.1%. If the firm's dividend will grow 4.5% each year beginning next year, by how much will the dividend grow ten years from now? In other words, how much will be the dividend growth between now (i.e. when dividend is $3.28) and ten years from now?
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