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Question: Carlson Enterprises' common stock dividend is expected to grow at 2% per year. The dividend recently paid was $0.20 per share, and the required return is 9%.

A. What is the estimated value of the common stock?

B. If the value of a common stock was $97 per share and dividends were recently $2.80, but expected to grow at 4% per year, what would be the required rate of return?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92792531

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