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For a constant growth stock, the dividend at year 5 can be expressed as: D 4 /(R-g) D 0 (1 + g) 4 D 0

For a constant growth stock, the dividend at year 5 can be expressed as:

D₄/(R-g)

D₀ (1 + g)⁴

D₀ (1 + R)⁵

D₁ (1 + g)⁴

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