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Could you please complete all parts of the question and show steps in excel if possible. Thank you Review Question #26 PART 1 A firm
Could you please complete all parts of the question and show steps in excel if possible. Thank you
Review Question #26 PART 1 A firm just paid an annual dividend of $1.20 and the dividend is expected to grow by 5% indefinitely. If the current price per share of the firm's equity is $28, then what rate of return are investors requiring on an investment in the firm's stock? Part 2 A firm is expected to pay an annual dividend of $1.20 in one year and the dividend is expected to grow by 5% indefinitely. If the current price per share of the firm's equity is $28, then what rate of return are investors requiring on an investment in the firm's stock? Part 3 A firm is expected to pay an annual dividend of $1.20 in one year. If the current price per share of the firm's equity is $28 and if investors are requiring a 10% return on an investment in the firm's stock, then what growth rate do investors expect of the firm's dividendsStep by Step Solution
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