Made-it common stock currently sells for 2250 per share the


Made-It common stock currently sells for $22.50 per share. The company's executive anticipate a constant growth rate of 10 percent and an end-of-year dividend of $2.

a. What is your expectd rate of return if you buy the stock for $22.50?

b. If you require a 17 percent return, should you purchase the stock?

 

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Finance Basics: Made-it common stock currently sells for 2250 per share the
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