(Answered) A rm will pay a dividend of 13 one year onl today and 500

Management Studies

A ?rm will pay a dividend of $13 one year ?onl today and $5.00 two years ?ora today (that is, D1 = $13 and D; = EDD). Therea?er, the dividend is expected to grow at a constant rate forever. The price of this stock today is $1130 and the required rate of return on the stock is l?%. What is the expected constant growth rate of the dividend stream ?'onl year 2 to in?nity?

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Business Management, Management Studies

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