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Doc Inc. just paid an annual dividend of $2.00 last week and is currently selling for $25 per share. Its dividends are expected to increase
Doc Inc. just paid an annual dividend of $2.00 last week and is currently selling for $25 per share. Its dividends are expected to increase by 6% annually. Based on the riskiness of Doc Inc's stock, your required rate of return is 12%. What should be your trading strategy on this stock? a. Sell, the stock is worth $26.50 per share. b. Sell, the stock is worth $21.00 per share. C. Nothing, the stock is fairly priced. d. Buy, the stock is worth $21.00 per share. e. Buy, the stock is worth $26.50 per share
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