Suppose an investor is considering the purchase of a share


Suppose an investor is considering the purchase of a share of the Utah Mining Company. The stock will pay a $ 3 dividend a year from today, This dividend is expected to grow at 10% per year (g=10%) for the foreseeable future. The investor thinks that the required return on this stock is 15%, given her assessment of Utah Mining’s risk. What is the price of a share of Utah Mining Company’s stock? If g= 12.5%, what is its stock price?

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Financial Management: Suppose an investor is considering the purchase of a share
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