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    Common stock

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    A firm pays a $4.90 dividend at the end of year one (D1), has a stock price of $70, and a constant growth rate (g) of 6%. Compute the required rate of return.

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    https://brainmass.com/business/accounting/common-stock-132781

    Solution Preview

    This is a question of Discounted Dividend Model (DDM)
    dividend is ...

    Solution Summary

    This solution assists in calculating the rate of return.

    $2.19

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