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Jacobson, Inc. paid $3.00 in dividends to common stockholders last year. Dividends are expected to grow at sustainable growth rate for an indefinite number of
Jacobson, Inc. paid $3.00 in dividends to common stockholders last year. Dividends are expected to grow at sustainable growth rate for an indefinite number of years. Jacobson has a return on equity of 30% with dividend payout ratio of 60%.
- If Jacobsons stock current market price is $33.60, what is the stocks expected rate of return?
- If your required rate of return is 18 percent, what is the value of the stock for you?
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