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Using the Gordon Growth model and the assumptions given below, what is the expected equity risk premium for the U.S? Dividend Yield 1.82% Expected Dividend
Using the Gordon Growth model and the assumptions given below, what is the expected equity risk premium for the U.S?
Dividend Yield 1.82%
Expected Dividend Growth Rate 7.35%
10 YR Bond Rate 1.24%
Current P/E 29
Future P/E 22
Answer as a percentage with two decimals
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