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If a stock currently costs $50, has an expected dividend growth rate of 5%, and just paid a $1 dividend, what is the required rate
If a stock currently costs $50, has an expected dividend growth rate of 5%, and just paid a $1 dividend, what is the required rate of return? NOTE: You need to calculate the return to 1 decimal place (i.e. 24% should not be rounded to 2.0%). Multiple Choice 7.1% 8.2% O 10.2% O 61% 07.0% Activate Windows This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been reducing the dividends by 15 percent each year (-15% growth rate of the dividend). How much are you willing to pay to purchase stock in this company if your required rate of return is 16 percent? Multiple Choice $6.69 $7.87 $36.60 $244.00 $207.40 Activate Windows
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