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What is the implicit dividend growth rate

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Reference no: EM132369050

Alibaba's stock price is USD 156.65. If investors expect Alibaba to pay a dividend of USD 3 next year, and they expect this dividend to grow at a constant rate starting two years from now. Moreover, investors want a 6.5% return on their investment. What is the implicit dividend growth rate that investors are assigning to Alibaba's dividends?

Reference no: EM132369050

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