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Johnson Corp is expected to pay a dividend of $2.50 per share at the end of the year, i.e., (D1 = $2.50). The stock currently
Johnson Corp is expected to pay a dividend of $2.50 per share at the end of the year, i.e., (D1 = $2.50). The stock currently sells for $65 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. Approximately, what is the equilibrium expected growth rate given the above information? 5.53% 5.96% 6.23% 6.65%
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