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Adams Inc.s outstanding common stock is currently selling in the market for $28. Dividends of $1.80 per share were paid last year, and the company

Adams Inc.s outstanding common stock is currently selling in the market for $28. Dividends of $1.80 per share were paid last year, and the company expects annual growth of 6%.

(a) What is the value of the stock to you, given a 11% required rate of return?

(b) Determine the expected rate of return for the stock.

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