TalixPartners Inc. has just paid a dividend of $3.50. The current stock price for the firm is

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TalixPartners Inc. has just paid a dividend of $3.50. The current stock price for the firm is $35.98. If you estimate that the dividends will grow at a constant growth rate of 2.15% per year.

What is the implicit rate of return that the investors are demanding from holding the firm's stock?

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: Apr 07, 2023 11:44 PM

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TalixPartners Inc. has just paid a dividend of $3.50. The current stock price for the firm is

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Expert Answer:

We can use the Gordon growth model to estimate the required rate of return ... View the full answer

Corporate Finance A Focused Approach

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