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Kay Williams is interested in purchasing the common stock of Reckers, Inc., which is currently priced at $41.85. The company is expected to pay a
Kay Williams is interested in purchasing the common stock of Reckers, Inc., which is currently priced at $41.85. The company is expected to pay a dividend of $2.58 next year and to increase its dividend at a constant rate of 7.70 percent. What should the market value of the stock be if the required rate of return is 14 percent? (Round answer to 2 decimal places, e.g. 15.20.) Market value of stock $ Is this a good buy?
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