Growth rate in the dividends is expected

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A stock is currently paying a divident of $1.00 per share and the growth rate in the dividends is expected to be 3% per year. Suppose investors expect a return of 10% on their investment in this company. Now suppose you purchased 1 share in the company today, and you sell it in 3 years. What will be the capital gain on your stock, assuming the growth rate in dividends and rate of return remain the same in 3 years.

Reference no: EM131334377

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