Equilibrium with required return equal to expected return

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A stock is trading at $65 per share. The stock is expected to have a year-end dividend of $5 per share (D1 = $5), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 10% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g?

Reference no: EM131055799

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