Common stock value - Constant growth McCracken Roofing, Inc., common stock paid a dividend of...
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Common stock value - Constant growth McCracken Roofing, Inc., common stock paid a dividend of \\( \\$ 1.02 \\) per share last year. The company expects earnings and dividends to grow at a rate of \8 per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of \\( \\$ 20 \\) ? b. If McCracken expects both earnings and dividends to grow at an annual rate of \11, what required rate of return would result in a price per share of \\( \\$ 20 \\)
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