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Bradley Broadcasting expects to pay dividends of $1.10, $1.21, and $1.33 in one, two, and three years, respectively. After that, dividends are expected to grow
Bradley Broadcasting expects to pay dividends of $1.10, $1.21, and $1.33 in one, two, and three years, respectively. After that, dividends are expected to grow at a constant rate of 4% forever. Stocks of similar risk yield 10%. What is the stock price of Bradley today? 20.32 23.05 17.32 26.64 What would a firm's required rate of return do as a result of an increase in a firm's expected growth rate? possibly increase, possibly decrease, or possibly have no effect a. remain constant Oc. increase Od. decrease
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