Jbt company just paid a dividend of 2 dividends will grow, Ask an Expert

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JBT company just paid a dividend of $2. Dividends will grow at a constant rate of 2% forever, and the required return for the company is 14%. Suppose you buy the stock at these conditions today, but one year later investors suddenly receive new information and now expect the growth rate in the stock to be 5%. What is your rate of return on this investment if you sell the shares one year later?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92399416

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