The constant-growth dividend discount model can be used both for the valuation of companies and...
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Finance
The constant-growth dividend discount model can be used both for the valuation of companies and for the estimation of the long-term total return of a stock.
Assume:
$20
=
Price of a Stock Today
8%
=
Expected Growth Rate of Dividends
$0.64
=
Annual Dividend One Year Forward
Using only the preceding data, compute the expected long-term total return on the stock using the constant-growth dividend discount model. Do not round intermediate calculations. Round your answer to two decimal places.
%
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