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Next calculate Initech's expected current stock price if Initech is a constant growth company whose last annual dividend (D0, which was paid yesterday) was $2.50
Next calculate Initech's expected current stock price if Initech is a constant growth company whose last annual dividend (D0, which was paid yesterday) was $2.50 and whose dividend is expected to grow indefinitely at a 5 percent rate. It's required rate of return (R(Re)) is 30%.
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