Question
(iii) If the expected rate of return is ^rc= D1/P0 + g = $1.50/$25 + 4% = 10% and the required rate of return is
(iii) If the expected rate of return is ^rc= D1/P0 + g = $1.50/$25 + 4% = 10% and the required rate of return is 10.6 percent. If investors seek to sell:
(a) What price will they seek to sell at? 5 marks
(b) At what point (i.e. percentage) will the stock be in equilibrium?
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Money Locates You
Authors: Joan Ekobena
1st Edition
1774821257, 978-1774821251
