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). You believe that a corporation's dividends will grow 5 percent on average into the future. The corporation just paid a dividend of $5 per

). You believe that a corporation's dividends will grow 5 percent on average into the future. The corporation just paid a dividend of $5 per share and its stock has a current price of $75. Using the Gordon growth model,

(a) what is the implied required rate of return for the stock? (2 points)

(b) what is the expected price of the stock in 1 year (after the dividend payment)?

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