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Green Corporation (GC) recently paid a dividend of $1.25 per share. GC expects to grow its dividend at a current rate of 4.8% indefinitely. GCs
Green Corporation (GC) recently paid a dividend of $1.25 per share. GC expects to grow its dividend at a current rate of 4.8% indefinitely. GCs common stock is currently selling for $25.50 per share and your required rate of return is 10.25%.
What is the value of one share of GC common stock to you?
What is the expected rate of return for GCs common stock?
Should you invest in GC common stock? Explain.
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