The constant-growth dividend discount model can be used both for the valuation of companies and...
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The constantgrowth dividend discount model can be used both for the valuation of companies and for the estimation of the longterm total return of a stock. Assume: $ Price of a Stock Today Expected Growth Rate of Dividends $ Annual Dividend One Year Forward Using only the preceding data, compute the expected longterm total return on the stock using the constantgrowth dividend discount model. Do not round intermediate calculations. Round your answer to two decimal places.
The constantgrowth dividend discount model can be used both for the valuation of companies and for the estimation of the longterm total return of a stock.
Assume: $ Price of a Stock Today
Expected Growth Rate of Dividends
$ Annual Dividend One Year Forward
Using only the preceding data, compute the expected longterm total return on the stock using the constantgrowth dividend discount model. Do not round intermediate calculations. Round your answer to two decimal places.
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