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A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1=$4), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14%. If you are an analyst who believes in efficient markets, what is your forecast of g?

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Joshua Stredder
Joshua StredderLv10
16 Jan 2021

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