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Shares of Delta Inc are currently selling for $66.16. The companys next dividend of $5.63 is expected to increase annually at a rate of 8.87%.
Shares of Delta Inc are currently selling for $66.16. The companys next dividend of $5.63 is expected to increase annually at a rate of 8.87%.
Required:
(a) Calculate the required return on this share.
(b)If your required return on such a risky investment is 20%, what will you be willing to pay for a share of Delta today?
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