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8.you are currently thinking about investing in a stock valued at $25.00 per share. The stock recently paid a dividend of $2.25 and its dividend
8.you are currently thinking about investing in a stock valued at $25.00 per share. The stock recently paid a dividend of $2.25 and its dividend is expected to grow at a rate of 5% for the foreseeable future. You normally require a return of 14% on stocks of similar risk. Is the stock overpriced , underpriced or fairly priced? 9. based on your answer, in 8#, would you invest ? why or why not?
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