Question: Please show all work and include: i) timeline, ii) equation set up, iii) answer visibly circled or highlighted. The answer is listed so the work

Please show all work and include: i) timeline, ii) equation set up, iii) answer visibly circled or highlighted. The answer is listed so the work is most important.

Ex 5) A stock is selling for $40 per share currently. The next dividend will be $1 per share, and will grow at 12% per year forever. What is the rate of return required by investors? Answer: 14.5%

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