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A Firm's Common Stock Is Currently Selling for $12

Question 136

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A firm's common stock is currently selling for $12.50 per share. The required rate of return is 9% and the company will pay an annual dividend of $.50 per share one year from now which will grow at a constant rate for the next several years. What is the growth rate?

Correct Answer:

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12.50 = .5...

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