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Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $43.46 per share. She expects the price of the stock to rise to
Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $43.46 per share. She expects the price of the stock to rise to $49.15 over the next 3 years. During that time she also expects to receive annual dividends of $3.35 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 8%? b. What is its expected return? a. The intrinsic worth of this stock is $ . (Round to the nearest cent.) b. The expected return is %. (Round to one decimal place.)
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