Astock is currently selling at 80 per share to yield 10


A stock is currently selling at 80 per share to yield 10 % nominal convertible semi-annually. The stock is expected to pay dividends at the end of each year forever. The next dividend, payable one year from now, is 2 and is expected to increase at a rate of X % per year. Find X.

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Financial Management: Astock is currently selling at 80 per share to yield 10
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