Question: Blackburn & Smith common stock currently sells for $ 23 per share. The companys executives anticipate a constant growth rate of 10.5 percent and an

Blackburn & Smith common stock currently sells for $ 23 per share. The company’s executives anticipate a constant growth rate of 10.5 percent and an end- of- year dividend of $ 2.50.
a. What is your expected rate of return?
b. If you require a 17 percent return, should you purchase the stock?

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