Company X is expected to pay dividend of $6/share next year and maintains a constant dividend growth

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Company X is expected to pay dividend of $6/share next year and maintains a constant dividend growth rate of 5 percent forever. Current stock price: $50.

What is the require rate of return using dividend growth model?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jun 23, 2023 12:35 AM

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Company X is expected to pay dividend of $6/share next year and maintains a constant dividend growth

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The dividend growth model also known as the Gordon growth mo... View the full answer

Corporate Finance A Focused Approach

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