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A company has declared and paid today a dividend on its shares of $2.40 per share. The Board of Directors has authorized that a cash
A company has declared and paid today a dividend on its shares of $2.40 per share. The Board of Directors has authorized that a cash dividend be paid each year with a growth of 8.5%. If an investor expects a rate of return on his investment in this type of stock from the 20% and if the share price today is $23.50, is it convenient for the investor to carry out this operation?
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