What is your rate of return on this investment

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Reference no: EM131882877

BT company just paid a dividend of $2. Dividends will grow at a constant rate of 3% forever, and the required return for the company is 13%. Suppose you buy the stock at these conditions today, but one year later investors suddenly expect the growth rate in the stock to be 5%. What is your rate of return on this investment if you sell the shares one year later? Answer to 4 decimal places, for example 0.1234.

Reference no: EM131882877

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