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Assume investors require a return of 10 percent on ibm

According to the 2015 Value Line Investment Survey, the growth rate in dividends for IBM for the next five years is expected to be 7.5 percent. Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock. Is the stock priced correctly? What factors could affect your answer?

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Finance Basics: Assume investors require a return of 10 percent on ibm

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