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Zero Growth ( Constant Dividend ) : Example Suppose stock is expected to pay a $ 0 . 5 0 dividend every quarter and the

Zero Growth (Constant Dividend): Example
Suppose stock is expected to pay a $0.50 dividend every quarter and the required return is 10% with quarterly compounding. What is the price?
Note: if dividends are paid quarterly, then the discount rate must be a quarterly rate as well!
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