How much should you expact to pay per share if the market


Majestic Homes stock traditionally provides an 8% rate of return. The company just paid a $2.50 a year dividend which is expected to increase by 5% per year. If you are planning on buying 1,000 shares of ths stock next year, how much should you expact to pay per share if the market rate of return for this type of security is 7% at the time of your purchase?

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Financial Management: How much should you expact to pay per share if the market
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