You are given the following data: ___________________________________ Required return 10% Present...
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Finance
- You are given the following data:
___________________________________
Required return 10%
Present dividend $1
Growth rate 5%
___________________________________
a.) What is the value of the stock?
b.) If the growth rate increases to 6 percent and the dividend remains $1, what is the value of the stock?
c.) If the required return declines to 9 percent and the dividend remains $1, what is the value of the stock? If the stock is selling for $20, what does that imply?
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