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In negotiating the sale of Company B to Company A, the analyst for company B offers analyst for company B claims that a value of
In negotiating the sale of Company B to Company A, the analyst for company B offers analyst for company B claims that a value of $60 per share is a fair price. what is the growth rate in the dividend stream implied by this valuation if Company B had just paid a dividend of $2 its shareholders? Use a discount rate of 10%. (round your answer to two decimal places if necessary - ie: a rate of 5% would round to .05)
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