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- In the dividend growth model suppose we have an expected dividend of $7 next year, with 2% growth and a 10% required return -

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- In the dividend growth model suppose we have an expected dividend of $7 next year, with 2% growth and a 10% required return - What do we expect the price of the stock to be five years from now? - Can we confirm, in general, that the expected price of the stock in t years is rg(1+g)tD1 ? - Suppose we have a stock that will not pay dividends for the next three years. Its required return is 12%. - In year four, we will see an $8 dividend, with 4% growth thereafter. - Can we calculate the price of this stock, by starting with the year-3 price, and discounting back to the present

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