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If a stock is growing at a constant rate of 5% with a dividend yield of 3% and the risk free rate is 2%, then
If a stock is growing at a constant rate of 5% with a dividend yield of 3% and the risk free rate is 2%, then the required return on the stock is 8% under a constant growth model. True or false,
but can you show me the calculations? Constant growth was earlier in the term, and I am rusty looking back... I will rate a thorough typed out answer :)
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