A stock pays an annual dividend of 2 - the price of the
A stock pays an annual dividend of $2.
The dividend is expected to increase by 2% per year (roughly the inflation rate) forever.
The price of the stock is $40 per share. At what cost of capital is this stock priced?
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a stock pays an annual dividend of 2the dividend is expected to increase by 2 per year roughly the inflation rate
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