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Expected Return Ecolap Inc. (ECL) recently paid a $0.50 dividend. The dividend is expected to grow at a 12 percent rate. At a current stock
Expected Return Ecolap Inc. (ECL) recently paid a $0.50 dividend. The dividend is expected to grow at a 12 percent rate. At a current stock price of $11.20, what is the return shareholders are expecting? First convert D0 to D1 then use equation:
expected return = I = D1+g
_____
p0
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