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2. Determining the Value of a Common Stock a. Wal-Mart paid $2.09 in dividends during the past 12 months. Assume the constant growth of WMT's

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2. Determining the Value of a Common Stock a. Wal-Mart paid $2.09 in dividends during the past 12 months. Assume the constant growth of WMT's dividend and common stock will be 1.9%. If the required return on WMT stock is 5.1%, using the constant growth model for stock valuation, what should be the current selling price of WMT stock? WAL MART b. What is the actual price of WMT's stock right now (look it up)? Based on your calculation, is WMT an attractive, or unattractive, stock to purchase? c. Assume WMT's current stock price is $98.09 (it isn't), WMT paid a dividend of $2.09 last year, and it is assumed WMT's dividend and stock price will grow at a constant 1.9%. What is the rate of return an investor would make by purchasing WMT stock

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