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An investor holds a Google common stock, which is expected to pay a dividend of dollar 5.00. The company has a corporation's expected growth rate

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An investor holds a Google common stock, which is expected to pay a dividend of dollar 5.00. The company has a corporation's expected growth rate (g) of 10% and the stock currently sells for $120. If an investor requires a rate of return of 15% then, as discussed in class, that investor should [V_c = D_0(I + g) (r_c - g) = D/(I + g)/(I_c - g)] hold, that is neither buy nor sell buy more of the Google stock insufficient information given for a decision sell the Google stock The following refers to questions 12 to 14: Phoenix Company common stock is currently selling for dollar 20 per share. Security analysts at Smith Blames have assigned the following probability distribution to the price of (and rate of return on) Phoenix stock one year from now (Risk = Square root of the variance)

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