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c. You should ( sell, buy ) the stock because the expected rate of return is ( less than, greater than ) your required rate
c. You should (sell, buy) the stock because the expected rate of return is (less than, greater than) your required rate of return or the value of the stock is (smaller than, larger than) the current market price.
(Common stock valuation) The common stock of NCP paid $1.75 in dividends last year. Dividends are expected to grow at an annual rate of 5.60 percent for an indefinite number of years a. If NCP's current market price is $20.26 per share, what is the stock's expected rate of return? b. If your required rate of return is 7.6 percent, what is the value of the stock for you? c. Should you make the investment? a. If NCP's current market price is $20.26 per share, the stock's expected rate of return is %. (Round to two decimal places.) b. If your required rate of return is 7.6 percent, the value of the stock would be$. (Round to the nearest cent.) your required rate of return or the value of the stock is V the current C. You should the stock because the expected rate of return is market price. (Select from the drop-down menus.)Step by Step Solution
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