What is your forecast of g


Problem:

A stock is trading at $65 per share. The stock is expected to have a year-end dividend of $2 per share (D1 = 2), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14 percent.

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Question: If markets are efficient, what is your forecast of g?

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Accounting Basics: What is your forecast of g
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