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Ms-Keen Motors' stock has a required return of 10 percent. The stock currently trades at $50 per share. The year-end dividend is expected to be $1.00 per share. After this payment, the dividend is expected to grow by 25 percent per year for the next three years. After four years, the dividend is expected to grow at a constant rate per year forever. What is the stock's expected constant growth rate?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M951617

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