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Investor expect the following series of dividends. Year 1 $1.15 Year 2 $1.30 Year 3 $1.50 Year 4 $1.75 Year 5 $2.10 After the 5th
Investor expect the following series of dividends. Year 1 $1.15 Year 2 $1.30 Year 3 $1.50 Year 4 $1.75 Year 5 $2.10 After the 5th year dividends will grow at a constant rate. If the required rate of return on the stock is 9.5% and the current market price is $72.64, what is the long-term rate of dividend growth expected by the market?
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