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Mathematics, 02.03.2020 20:57 msitez5993

If a stock has a required return of "r", its next dividend is expected to be "DIV1", and its dividends are expected to grow at a constant rate "g" thereafter, then its current share price "P0" can be determined by . P0=DIV1/(r-g) P0=DIV1 x (r-g) P0=P1/r P0=DIV1/r

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