Based on the constant-growth dividend discount model

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3. A firm pays a current dividend of $1.00 which is expected to grow at a rate of 5% indefinitely. If current value of the firm’s shares is $35.00, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)? (Omit the "%" sign in your response.)

Gordon DDM ____% ?

Reference no: EM131520332

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