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just paid a dividend of $2 per share. The firms dividend is expected to grow at a constant rate of 5% per year, and investorsrequire
just paid a dividend of $2 per share. The firms dividend is expected to grow at a constant rate of 5% per year, and investorsrequire a 15 % rate of return on the stock.
What is thestocks value?
Suppose theriskiness of the stock decreases, which causes the required rate of return to fall to 13%. Underthose conditions, what would be the stocksvalue?
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