Question
Common stock valueConstant growthMcCracken Roofing, Inc., common stock paid a dividend of $ 1.14 per share last year. The company expects earnings and dividends to
Common stock valueConstant growthMcCracken Roofing, Inc., common stock paid a dividend of $ 1.14 per share last year. The company expects earnings and dividends to grow at a rate of 5% per year for the foreseeable future.
a.What required rate of return for this stock would result in a price per share of $28?
b. If McCracken expects both earnings and dividends to grow at an annual rate of 11%, what required rate of return would result in a price per share of $28
a. The required rate of return for this stock, in order to result in a price per share of $28, is ?????%.(Round to two decimal places.)
b. The required rate of return for this stock, in order to result in a price per share of $28, is ???????%. (Round to two decimal places.)
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