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This Question: 1 pt 1 7 of 14 (11 complete) This Test: 14 pts possible (Common stockholder expected return) Alyward & Bram common stock currently

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This Question: 1 pt 1 7 of 14 (11 complete) This Test: 14 pts possible (Common stockholder expected return) Alyward & Bram common stock currently sells for $23.50 per share. The company's executives anticipate a constant growth rate of 9.5 percent and an end of year dividend of $1.25. a. What is your expected rate of return? b. If you require a return of 17 percent, should you purchase the stock? a. If you buy the stock for $23.50, your expected rate of return is %. (Round to two decimal places) b. If you require a return of 17 percent, the value of the stock for you is (Round to the nearest cent) your required rate of return or the intrinsic value If you require a return of 17 percent, you should the stock because the expected rate of return is of the stock is the current market price. (Select from the drop-down menus)

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