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Stocks are trading at 18X earnings. You expect earnings to grow 4% per year over the next five years. At the end of five years,
Stocks are trading at 18X earnings. You expect earnings to grow 4% per year over the next five years. At the end of five years, you expect stocks to be trading at 16X earnings. The dividend yield should be 1.75% per year. If you invest in stocks, what will your compound annual growth rate be?
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