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Unformatted text preview: dividend payments at the required rate of return (calculated in #8.2) ? (recall: annualized return = geometric mean) 2) Suppose it is now three years later (time t=3), you just received your third dividend payment (D 3 ), and the price of the stock (P 3 ) is $50. Suppose expectations regarding future dividend payments remain unchanged. What is the new required rate of return? B) What is the probability that of observing a stock return < 100%?...
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 Fall '08
 MATTHEWJAMESBARCASKEY
 Dividend, Dividend yield, interim dividend payments

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