What is the firm expected using a dividend discount model

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Sticky Company currently pays a dividend of P1 per share and has a share price of P 20 If this dividend was expected to grow at a 12 percent rate forever.

Problem a. What is the firm's expected, or required, return on equity using a dividend discount model approach? Use this formula : ke = D1/P0 + g

Reference no: EM132778019

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