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The required rate of return of equity investors ( i . e . , cost of equity ) is 1 8 % . Given the
The required rate of return of equity investors ie cost of equity is
Given the following information and the cost of equity, calculate the implied share price for XYZ:
paid a dividend of $ recently
The dividends is expected to increase by in year one and by in year two
After that, dividends will increase at a rate of per year indefinitely
Implied share price: $
What is the implied share price?
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