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Company XYZ's dividend of $2 is expected be 4% higher next year, and after that the dividend is expected to grow at a constant 1.5%
Company XYZ's dividend of $2 is expected be 4% higher next year, and after that the dividend is expected to grow at a constant 1.5% onto perpetuity. Assuming a cost of equity of 11%, using the Gordon growth model, what should the stock be worth today? $19.7/share $28.6/share $21.9/share $21.1/share
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