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The common stock of Stanleys corp. is currently selling for $40 per share. It is expected that Omega will pay a dividend equal to $3.75
The common stock of Stanleys corp. is currently selling for $40 per share. It is expected that Omega will pay a dividend equal to $3.75 per share this year, (D-HAT 1). In addition, analysts have indicated that the company has been growing at a constant rate of 3 percent, and this growth is expected to continue forever.
- What is ABS's cost of retained earnings this year?
- What is the expected price of this stock next year?
- What would be the cost of retained earnings one year from now?
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