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(Common stock valuation) The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for
(Common stock valuation) The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years. a. If NCPs current market price is $23.50 per share, what is the stocks expected rate of return? b. If your required rate of return is 10.5%, what is the value of the stock for you? c. Should you make the investment?
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