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(Common stockholder expected return) Alyward and Bram common stock currently sells for $ 23.50 per share. The company's executives anticipate a constant growth rate of 8.6 percent and an end-of-year dividend of $ 2.50.

a. What is your expected rate of return?

b. If you require a return of 18 percent, should you purchase the stock?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92416470

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