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Q1-4. A stock is expected to pay a dividend of $0.50 at the end of the year (D1 = 0.50), and it should continue to
Q1-4. A stock is expected to pay a dividend of $0.50 at the end of the year (D1 = 0.50), and it should continue to grow at a constant rate of 7% a year. If its required rate of return is 12%, what is the stocks expected price 4 year from now? What is the price now? Gordon growth model
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