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Using the Constant-Growth Dividend DDM compute the Required Rate of Return for Company Y based on the following information: --Company Y pays a current dividend
Using the Constant-Growth Dividend DDM compute the Required Rate of Return for Company Y based on the following information:
--Company Y pays a current dividend of $1.50 which is expected to grow indefinitely at a rate of 5%. The current value of Company Y shares is $42.50.
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