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Expected growth rate of dividends

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Reference no: EM131595202

You want to earn a return of 10% on each of two stocks (your discount rate), A and B. Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends is 6% for stock A and 5% for stock B. Using the Gordon Growth Model, the price of stock A ________.

Reference no: EM131595202

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