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QUESTION

The current price of a stock (P0) is $20 and last year's price (P-1) was $18. The latest dividend (D0) is $2.

The current price of a stock (P0) is $20 and last year's price (P-1) was $18.87. The latest dividend (D0) is $2. Given a constant growth rate (g) in dividends, earnings and the share price, what formula is used to determine the stock's total return for the coming year?

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