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Required rate of return is 115 the dividend is expectedto

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McDonnell Manufacturing isexpected to pay a dividend of $1.50 per share at the end of theyear (D1 = $1.50). The stock sells for $34.50 per share, and its required rate of return is 11.5%. The dividend is expectedto grow at some constant rate, g, forever. What is the equilibriumexpected growth rate?

Reference no: EM13572906

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