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this is simple Q

here is the formula :

P0= D1/(K-G)

P0= 40

K= 10%

G=7%

D1= ??

D1= 1.2

Cheers ;)

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Q: Wald Inc's stock has a required rate of return of 10 and it sells for 40 per share Wald's dividend is expected to grow at a constant rate of 7 per year What is the expected year-end dividend D1?
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