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The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as

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The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows D1 (rs -g) 0 If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? O All companies Young companies with unpredictable earnings Mature companies with relatively predictable earnings Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.05 at the end of th year. Its dividend is expected to grow at a constant rate of 7.50% per year. If Walter's stock currently trades for $14.00 per share, what is the expected rate of return? 22.14% 17.64% 7.64% 8.74% Walter's dividend is expected to grow at a constant growth rate of 7.50% per year, what do you expect to happen Walter's expected dividend yield in the futurei It will increase. O It will decrease. O It will stay the same

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