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Calculate the required rate of return for common equity investors if the stock sells for $40 per share and will pay a dividend (D1) of
Calculate the required rate of return for common equity investors if the stock sells for $40 per share and will pay a dividend (D1) of $4.40 next year. Dividends are expected to grow at a constant rate of 5%.
7.6% | ||
12.0% | ||
12.6% | ||
16.0% |
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