If investors expect a return of 12 on a stock that is


If an analyst expects a company's dividend to be $2.50 next year, $3 in two years, and then constant at $3.25 forever, what is the value of the company's stock if investors require a return of 8%? If investors expect a return of 12% on a stock that is expected to have a dividend yield of 4% next year, what is the expected growth rate on this stock?

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Finance Basics: If investors expect a return of 12 on a stock that is
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