mostly need help with Question B 6) Davenport Corporation's last dividend was $2.70,...
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mostly need help with Question B 6) Davenport Corporation's last dividend was $2.70, and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next three years and the stock will then reach $25 per share. a) How much should you be willing to pay for the stock if you require a 17 percent return? (6 pts) b) Calculate the present value of the growth opportunity? What does it represent? (6 pts)
mostly need help with Question B
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