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Please answer both or none! Thank you ahead of time. Explain answer 5 a.What is the price of a share of common stock that has
Please answer both or none! Thank you ahead of time. Explain answer
5
a.What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%, an expected growth rate of 5%, and a beta of 2.0?
b. Ten years ago, you invested $8,000 in IBM stock, which grew at an annual rate of 10% during that time. You wish to withdraw the money today and invest in Google stock, which is expected to earn 14% per year for the next ten years. How much money will you have 10 years from now?
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