A firm pays a current dividend of 2 which is expected to


A firm pays a current dividend of $2, which is expected to grow at a rate of 8% indefinitely. If the current value of the firm’s shares is $72, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)? (Do not round intermediate calculations.)

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Financial Management: A firm pays a current dividend of 2 which is expected to
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