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Company XYZ just paid a dividend of $ 2 per share. The dividend is expected to grow at a constant rate of 5 % per

Company XYZ just paid a dividend of $

2

per share. The dividend is expected

to grow at a constant rate of

5 %

per year indefinitely. If the required rate of return for investors is

10 %,

what is the current value of the stock using the Gordon Growth Model?

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