Question: Given that the common stock is a constant growth stock (g = 12%) and assuming that the required return on equity is constant at rE

Given that the common stock is a constant growth stock (g = 12%) and assuming that the required return on equity is constant at rE = 0.17, if you were to purchase the stock today (at P0) and sell it one year later at the market price found in #4 (i.e., at P1), what is the dollar value of the capital gain you would have realized?

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