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Problem:

Common stockholder expected return-Blackburn stock currently sells for $24.75.The company's executives anticipate a growth rate of 9.9 percent and end of year dividend of $2.25.

Required:

Question 1: What is your expected return?

Question 2: If you require a return of 18percent should you purchase the stock?

Note: Show all workings.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148348

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