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the dividend to be paid at the end of the year is $0.75, the growth rate...

the dividend to be paid at the end of the year is $0.75, the growth rate is 5% and the stock price is $25. what is the required rate of return according to the constant growth dividend model?

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Answer #1

Di=0.75 g = 5l. Po = 25 Required return = [1 + 9 ] x 100 = Posts +.057x100 = 8.1. : Required return = 8% Ans 05 X 100Di=0.75 g = 5l. Po = 25 Required return = [1 + 9 ] x 100 = Posts +.057x100 = 8.1. : Required return = 8% Ans 05 X 100

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