Question
The common stock of NCP paid $1.50 in dividends last year. Dividends are expected to grow at an annual rate of 5.5 percent for an
The common stock of NCP paid $1.50 in dividends last year. Dividends are expected to grow at an annual rate of 5.5 percent for an indefinite number of years.
a. If NCP's current market price is $26.54 per share, what is the stock's expected rate of return?
b. If your required rate of return is 7.5 percent, what is the value of the stock for you?
c. Should you make the investment?
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
