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Business, 19.03.2021 06:00 rscott2649

A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20 percent per year for the following three years. Thereafter, the dividend growth rate is expected to be 3.5 percent per year forever. Investors require a rate of return of 12 percent on this stock. Calculate the annual dividend expected to be paid by the stock nine years from today (D9).

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A stock expects to pay a dividend of $5.49 per share next year. Dividends are expected to grow at 20...
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