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The Rich Company Has a Dividend Growth Rate of 14

Question 177

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The Rich Company has a dividend growth rate of 14 percent, a current share price of $56.00, and a current dividend of $1.50. What is the required rate of return for Rich Company shares?

Correct Answer:

verifed

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ke = D0(1 + g)/P0 + g
    = 1.5...

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