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Q 3 : ( Constant Growth DDM ) Suppose a company just paid a dividend of $ 0 . 8 0 ( D 0 )

Q3: (Constant Growth DDM) Suppose a company just paid a dividend of $0.80(D0). It is expected to increase its dividend by 3 percent per year. If the market requires a return of 10 percent on assets of this risk level, how much should the stock be selling for?
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