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A stock has a price of $55 and just paid an annual dividend of $1.4. The dividend is expected to grow by 5% per year.
A stock has a price of $55 and just paid an annual dividend of $1.4. The dividend is expected to grow by 5% per year.
a. What is the expected return?
b. What would be your expected return if you had to pay $70 for the stock?
c. What would be your expected return if you only had to pay $40 for the stock?
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