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Business, 19.02.2020 02:20 mine9226

Company B is expected to pay a dividend of $2 per share at the end of year 1 and the dividends are expected to grow at a constant rate of 4 percent forever. If the current price of the stock is $20 per share, calculate the expected return (i. e., the cost of equity capital for the firm)

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Company B is expected to pay a dividend of $2 per share at the end of year 1 and the dividends are e...
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