Question
Please provide detailed a explanation. Questions similar to these are posted and answered, but do not have step by step explanations, so I am still
Please provide detailed a explanation. Questions similar to these are posted and answered, but do not have step by step explanations, so I am still confused. Thank you so much for the assistance!
1. The Brady Corporation just paid a dividend of $1.50. Its stock currently sells for $26.50. If investors require a 12% return on Brady's stock, and its rate of growth is a constant 6%, what is the estimated value of Brady's stock two years from now?
2. The Data General Company is expected to pay an annual dividend of $2.53 at the end of the year. Their growth rate is 8% annually. You find that their stock is currently trading at $35.00. What must be their required rate of return?
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