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Young Financials stock is currently trading at a price of $12.00 per share. Investors expect the company to pay a dividend of $1.20 per share
Young Financials stock is currently trading at a price of $12.00 per share. Investors expect the company to pay a dividend of $1.20 per share next year, and they expect this dividend to grow at a constant rate forever. If they require a return of 15% on their investment, what is the expected growth rate in dividends?
Can you please show me how you got the answer, preferably in Excel.
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