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Skyview's Co. just paid a dividend of $2.75 on its common stock. The company's dividends are expected to grow at a constant rate of 1.8%

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Skyview's Co. just paid a dividend of $2.75 on its common stock. The company's dividends are expected to grow at a constant rate of 1.8% indefinitely. Di= Por a. You observe a market price of $20.50 for the stock. Compute the expected rate of return of the stock. lics b. If the required rate of return on this stock is 12.5%, compute the value of Susan's stock. Vcs c. Should you purchase this stock? Why

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