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The S&P 500 is at 2900. The expected dividends and cash flows next year on the stocks in the index are expected to be 5%
The S&P 500 is at 2900. The expected dividends and cash flows next year on the stocks in the index are expected to be 5% of the index. If the expected growth rate in the dividends and cash flows over the long term is expected to be 6% and the risk-free rate is 4%, estimate the implied equity risk premium.
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