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Duke is deciding whether to purchase HRB and/or AEP He does his homework and believes that both HRB and AEP will pay dividends that will
Duke is deciding whether to purchase HRB and/or AEP He does his homework and believes that both HRB and AEP will pay dividends that will grow at a rate of 2 percent per year. When he assesses the risk of of the investment he feels that he needs at least a 6 percent expected rate of return to make either investment . Assume the stock prices listed in table 3 are inclusive of the current dividend. He will decide to
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