Q: You expect the earnings and dividends of a firm to grow indefinitely by 5%. If the next year’s expected dividend is $10 and the market capitalization rate is 8%, what is the appropriate interval of your expectation of the current price.
The signature of the function should be like:
def stockprice(dividend, discount_rate, growth_rate):
Use the following formula to calculate stock price.
Stock price = dividend/(opportunity cost - growth rate)
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