Calculate your forecast of gl

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Reference no: EM131997534

A stock is trading at $85 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate gL throughout time.

The stock's required rate of return is 10% (assume the market is in equilibrium with the required return equal to the expected return).

What is your forecast of gL? Round the answer to three decimal places.

Reference no: EM131997534

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