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5) 10 points Stock currently sells for $45.10 per share and has a fixed 3.5% dividend growth rate. The required rate of retur

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Answer #1

Cost of equity = ke = 12.00% 3.50% $45.10 Price = 01/(ke-g) = D1 = $3.83 (45.10*(0.12-0.035)] recent dividend =DO = 01/(1+gro

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