Based on the discounted cash flow model

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XYZ common stock is expected to pay a dividend of $1.18 next year, and that dividend grows at a constant rate of 11.1 percent. If the current price of XYZ common stock is $46.29, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model? (Show your answer in DECIMAL FORM to three decimals, e.g., 12.3% would be entered as 0.123).

Reference no: EM131919583

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