Question
8-11. (Common stock valuation) Bates, Inc. pays a dividend of $1 and is currently selling for $32.50. If investors require a 12 percent return on
8-11. (Common stock valuation) Bates, Inc. pays a dividend of $1 and is currently selling for $32.50. If investors require a 12 percent return on their investment from buying Bates stock, what growth rate would Bates, Inc. have to provide the investors?
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
