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number 4 4. Tokyo's stock has a required return of 14%, and the stock sells for $55 per share. The firm just paid a dividend
number 4
4. Tokyo's stock has a required return of 14%, and the stock sells for $55 per share. The firm just paid a dividend of $1.5, and the dividend is expected to grow by 20% per year for the next 4 years. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock's expected constant growth rate after t = 4, i.e., what is X? Choose the nearest answer * O A) 9.8% O B) 7.4% O C) 5.7% OD) 4.3% OE) None of the above Step by Step Solution
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