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Business, 17.06.2021 17:10 briannalv0814

JBT company just paid a dividend of $3. Dividends are expected to grow at a constant rate of 3% forever, and the required return for the company is 14%. You buy the stock at these conditions. One year later the company pays D1 as expected and then immediately announces news about the company. Because of the new information, investors suddenly expect the constant growth rate in the stock will be 6%. What is your rate of return on this investment if you sell the shares after the news is announced?

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JBT company just paid a dividend of $3. Dividends are expected to grow at a constant rate of 3% fore...
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