
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Investors believe that a certain stock will pay a $4 dividend next year. The market price of the
stock is $66.67, and investors expect a 12 percent return on the stock. What long-run growth rate
in dividends is consistent with the current price of the stock?
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