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What is the per annum required rate of return on a share whose price is $5 and has just paid an annual dividend of $0.25
What is the per annum required rate of return on a share whose price is $5 and has just paid an annual dividend of $0.25 per share, where the dividends paid by the company are expected to grow indefinitely at a rate of 2 per cent per annum?
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To calculate the required rate of return on a share we can use the Gordon Growth Model whi...
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
