The Money Tree Investment Fund is considering adding a new $30 million investment, White Inc. shares, to
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The Money Tree Investment Fund is considering adding a new $30 million investment, White Inc. shares, to the list in Part 1. White Inc. has just paid a dividend, D0, of $1.50 per share, with an expected constant growth rate of 2%. Currently the market price is $88.00 per share. The firm's stock is twice as volatile as the market.The average market return is 8% and the yield on government securities is 3%. What is your recommendation? (Show supporting calculations.)
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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