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DEF Corp. has just paid a $2.00 dividend and expects the dividends to grow at a rate of 5% forever. The expected annual return is
DEF Corp. has just paid a $2.00 dividend and expects the dividends to grow at a rate of 5% forever. The expected annual return is 8%.
- What is the price of the stock today? (1.5 marks)
- What will the price be in 5 years? (3.5 marks)
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