This ones a little harder. Suppose the current share price for the firm in the previous problem

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This one’s a little harder. Suppose the current share price for the firm in the previous problem is $67.25 and all the dividend information remains the same. What required return must investors be demanding on the company’s stock? Set up the valuation formula with all the relevant cash flows, and use trial and error to find the unknown rate of return.

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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