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You are considering the purchase of a common stock that just paid a dividend of $ 2 . 0 0 . You expect this stock
You are considering the purchase of a common stock that just paid a dividend of $ You expect this stock to have a growth rate of percent for the next years, resulting in dividends of D$ D$ and D$ The longrun normal growth rate after year is expected to be percent that is a constant growth rate after year of per year forever If you require a percent rate of return, how much should you be willing to pay for this stock?
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