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Q5b). Using constant growth model, calculate the value of a stock that expects to pay a $15.00 dividend next year, and then increase the dividend

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Q5b). Using constant growth model, calculate the value of a stock that expects to pay a $15.00 dividend next year, and then increase the dividend at a rate of 8% per year, indefinitely? Assume that10% is the expected return on such an investment. (10 marks)

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