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How price based on constant-growth dividend discount model

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Reference no: EM132811496

Problem 1: A stock offers an expected dividend of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00 and shows no tendency to change. How can you explain this price based on the constant-growth dividend discount model?

Reference no: EM132811496

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