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Gough Fraser is considering purchasing the stock of ASIOA Companies, which he plans to hold indefinitely. ASIOA just paid an annual dividend of $3.00 and
Gough Fraser is considering purchasing the stock of ASIOA Companies, which he plans to hold indefinitely. ASIOA just paid an annual dividend of $3.00 and the price of the stock is $48 per share. The earnings and dividends of the company are expected to grow forever at a rate of 6 percent per year. What annual rate of return does Gough expect on his investment (i.e., ke)
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