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Stock A has just paid an annual dividend (D 0 ) of $2.00 per share, that this dividend is expected to grow at a constant
Stock A has just paid an annual dividend (D0) of $2.00 per share, that this dividend is expected to grow at a constant rate of 3 percent each year, and that investors require a 10 percent rate of return. Determine what percentage of its intrinsic value is based on the dividends to be received over the next 20 years.
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