Assume that the dividends to be paid on a market index next period are expected to be $20. Investors require 15 percent to invest in stocks and expect dividends to grow at 10 percent per year. What is the value of this index?

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The Answer of Assume that the dividends to be paid on a market index next period are expected to be $20. Investors require 15 percent to invest in stocks and expect dividends to grow at 10 percent per year. What is the value of this index?

Assume That the Dividends to Be Paid on a Market