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Problem 2 According to the fundamental value of stocksI assume that dividends grow at a constant rate of g per year DI = 041 +
Problem 2 According to the fundamental value of stocksI assume that dividends grow at a constant rate of g per year DI\" = 041 + g), and in :1 years from now Dt+n = Dt(1 + 3')" Rewrite the price equation assuming the firm pays dividends forever (e.g., a consol) and answer when we should expect prices to be high
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