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Nyex Inc. is expected to pay a dividend of $1.15 per share at the end of the year (D1 = $1.15). The stock sells for
Nyex Inc. is expected to pay a dividend of $1.15 per share at the end of the year (D1 = $1.15). The stock sells for $35.50 per share, and its required rate of return is 11.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
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