Suppose we observe a stock selling for $20 per share. The next dividend will be $1...
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Suppose we observe a stock selling for $20 per share. The next dividend will be $1 per share. You think that the dividend will grow by 10% per year more or less indefinitely. What return does this stock offer if this is correct? Suppose we observe a stock selling for $20 per share. The next dividend will be $1 per share. You think that the dividend will grow by 10% per year more or less indefinitely. What return does this stock offer if this is correct?
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