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A company paid a dividend of $3. The expected growth rate is anticipated to be negative 6% in the foreseeable future. Investors return is 22%.

  1. A company paid a dividend of $3. The expected growth rate is anticipated to be negative 6% in the foreseeable future. Investors return is 22%. What would be the value of the stock?
  2. A stock sells for $25 currently and pays a dividend of $3/share. The company is expected to grow at a rate of 5% indefinitely. What is required rate of return on this stock?

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