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imagine that you buy a stock for a price P0 = $11.20 and that you expect the stock to pay a dividend D1 = $1.68

imagine that you buy a stock for a price P0 = $11.20 and that you expect the stock to pay a dividend D1 = $1.68 at the end of the year and to grow at a constant rate of g = 8% in the future. in this case, whats your expected rate of return?

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