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You sister is trying to sell you a stock with a current market price of $28. The stocks last dividend was $2.00, and earnings and
You sister is trying to sell you a stock with a current market price of $28. The stocks last dividend was $2.00, and earnings and dividends are expected to increase at a constant growth rate of 1.5%. Your required return on this stock is 8%. Should you purchase this stock from her?
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