What should be the price of the stock
Question: A share of common stock just paid a dividend of $3.25 per share. The expected long-run growth rate for this stock is 18%. If investors require a rate of return of 24%, what should the price of the stock be?
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Q1. Compute the current price of the stock. Q2. If the 3 million is used to pay dividends , how much will dividends per share be?
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If investors require a rate of return of 24%, what should the price of the stock be?
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