Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $ 40.66 per...
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Accounting
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at
$ 40.66
per share. She expects the price of the stock to rise to
$ 48.04
over the next
3
years. During that time she also expects to receive annual dividends of
$ 5.17
per share.
a. What is the intrinsic worth of this stock, given a required rate of return of
9 %
?
b. What is its expected return?
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