Gail dribble is analyzing the shares of petscan radiology, Ask an Expert

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Gail Dribble is analyzing the shares of Petscan Radiology. Petscan's stock pays dividend once each year, and it just distributed this year's $0.85 dividend. The market price of the stock is $12.14 . Gail estimates that Petscan will increase its dividends by 7% per year forever. After contemplating the risk of Petscan stock, Gail is willing to hold the stock only if it provides an annual expected return of at least 13%. Should she buy Petscan shares or not?

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Accounting Basics, Accounting

Category:- Accounting Basics
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