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Question: Your broker recommends that you purchase Good Mills at $30. The stock pays a $2.20 dividend, which (like its per share earnings) is expected to grow annually at 8 percent.

a. If you want to earn 15 percent on your funds, is this stock a good buy?

b. What if the Good Mills dividend was only $1.00. How would this affect the valuation?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9792681

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