A certain stock paid a dividend of $2.00 a share this year and is selling for $52 a share.
Dividends are expected to grow at the rate of 8% indefinitely. If you require a 12%
return, should you purchase this stock at its current price? Explain your answer.

Question

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The Answer of A certain stock paid a dividend of $2.00 a share this year and is selling for $52 a share.
Dividends are expected to grow at the rate of 8% indefinitely. If you require a 12%
return, should you purchase this stock at its current price? Explain your answer.

A Certain Stock Paid a Dividend of $2