The sampp 500 is at 1400 the expected dividends and cash, Ask an Expert

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The S&P 500 is at 1,400. The expected dividends and cash flows next year on the stocks in the index are expected to be 4% of the index. If the expected growth rate in dividends and cash flows over the long term is expected to be 3% per year forever and the riskless rate is 2.5%, using the constant growth model estimate the implied cost of equity AND the implied equity risk premium.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92790511

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