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Business, 02.03.2020 22:55 vmosley8648

Johnson Corp is expected to pay a dividend of $2.50 per share at the end of the year, i. e., (D1 = $2.50). The stock currently sells for $65 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. Approximately, what is the equilibrium expected growth rate given the above information?

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Johnson Corp is expected to pay a dividend of $2.50 per share at the end of the year, i. e., (D1 = $...
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