Investors expect to receive from buying IBIS stock

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Reference no: EM131888656

IBIS Corporation has had dividends grow from $2.50 per share to $6.00 per share over the last 10 years (the $6.00 per share dividend was paid yesterday; that is, D0 = $6.00). This compounded annual growth rate in dividends is expected to continue into the future forever. If the current market price of IBIS’s stock is $45.00 per share, what rate of return do investors expect to receive from buying IBIS stock?

Reference no: EM131888656

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