Required return equal to the expected return

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Reference no: EM13731334

A stock is trading at $55 per share. The stock is expected to have a year-end dividend of $2 per share and expected to grow at same constant rate g throughout time. The stocks required rate of return is 16 %( assume the market is in equilibrium with the required return equal to the expected return) what is your forecast of g?

Reference no: EM13731334

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