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In our formula for valuing a stock with constant growth in dividends (P 0 = D 1 / (K e g)), K e is the

In our formula for valuing a stock with constant growth in dividends (P0 = D1 / (Ke g)), Ke is the

Question 2 options:

a)

Price of the stock today

b)

Dividend at the end of the first year

c)

Required rate of return

d)

Constant growth rate in dividends

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