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Maspeth Robotics shares are currently selling for 24 (i.e. the market price) and have paid a dividend of 1 per share for the most recent
Maspeth Robotics shares are currently selling for 24 (i.e. the market price) and have paid a dividend of 1 per share for the most recent year. The following additional information is given: - The risk-free rate is 4 percent; - The shares have an estimated beta of 1.2; and - The equity risk premium is estimated at 5 percent. Based on the above information, determine the constant dividend growth rate that would be required to justify the market price
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