Question: Using the Gordon Growth model and the assumptions given below, what is the expected equity risk premium for the U.S? Dividend Yield 1.82% Expected Dividend

Using the Gordon Growth model and the assumptions given below, what is the expected equity risk premium for the U.S?

Dividend Yield 1.82%

Expected Dividend Growth Rate 7.35%

10 YR Bond Rate 1.24%

Current P/E 29

Future P/E 22

Answer as a percentage with two decimals

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