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Alexander corporation will pay a dividend of $2.60 next year. This company stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you wan a 15 percent rate of return, how much will you pay a year forever. If you want a 15 percent rate of return how much will you pay for the stock What if you want a 10 percent rate of return? What does this tell you about the relationship between the required return and the stock price?

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