Question: Consider a stock with a current dividend DO=$4 and a required rate of return R=12%. a The stock trades at a price PO=$40. What dividend

Consider a stock with a current dividend DO=$4 and a required

Consider a stock with a current dividend DO=$4 and a required rate of return R=12%. a The stock trades at a price PO=$40. What dividend growth rate g must investors expect for this price to reflect the stock's fundamental value? g= _ % (answer a number with 1 decimal, e.g., 1.2) A

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