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Wendy Inc. stock pays a dividend $1.81 at t = 0 . From that point forward it will have a constant growth in dividends of
Wendy Inc. stock pays a dividend $1.81 at t = 0. From that point forward it will have a constant growth in dividends of 4.9 percent. If stocks in a similar risk category as Windham Inc. need to have expected return of 9.1%, what would investors want to pay for Windham stock? Hint: first calculate dividends at t = 1.
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