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Suppose that a stock is worth $20 per share. The stock will pay you $5 next year and this will grow at 5% for 4
Suppose that a stock is worth $20 per share. The stock will pay you $5 next year and this will grow at 5% for 4 years. Then, the dividend growth will change. Suppose that the required rate of return on this stock is 20%. What is the dividend growth rate after the initial 5 dividend payments?
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