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(a) Steady As She Goes Inc. will pay a year-end dividend of $3 per share and the price next year is expected to be $30.

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(a) Steady As She Goes Inc. will pay a year-end dividend of $3 per share and the price next year is expected to be $30. If the rate of return is 10%, what is the intrinsic value (present value) of the stock? (b) If you bought a share of the above stock for $25 today, what is your expected return on the stock of Steady As She Goes? (c) Steady As She Goes Inc. will pay a dividend of $3 per share. Investors expect the share to grow at a rate of 4% indefinitely. If the stock sells for $25 a share today, what is the rate of return on the stock? (a) Waterworks has a dividend yield of 8%. If its dividend grows by a constant rate of 5%, what is r

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