A firm pays a current dividend of $2, which is expected to grow at a rate of 6% indefinitely. If the current value of th

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answerhappygod
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A firm pays a current dividend of $2, which is expected to grow at a rate of 6% indefinitely. If the current value of th

Post by answerhappygod »

A firm pays a current dividend of $2, which is expected to grow
at a rate of 6% indefinitely. If the current value of the firm’s
shares is $53, what is the required return applicable to the
investment based on the constant-growth dividend discount model
(DDM)? (Do not round intermediate
calculations.)
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