Use the dividend discount model to determine the required rate of return on a stock...
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Finance
Use the dividend discount model to determine the required rate of return on a stock that is currently trading on the New York Stock Exchange at $21.50 per share. Assume the stock is at equilibrium. A dividend of $.78 is expected one year from now. The dividend growth rate is 5.5%. What is the required return on the stock under the dividend discount model? 8.63% 10.13% 5.5% 9.13% O 3.63%
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