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Alexander Corp. will pay a dividend of $4.20 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever.

Requirement 1: If you want a return of 15 percent, how much will you pay for the stock? Current stock price $

Requirement 2: If you want a return of 11 percent, how much will you pay for the stock? Current stock price $

Financial Management, Finance

  • Category:- Financial Management
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