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Your broker recommends that you purchase XYZ Inc. at $60.00. The stock pays a $2.40 dividend which (like its per share earnings) is expected to

Your broker recommends that you purchase XYZ Inc. at $60.00. The stock pays a $2.40 dividend which (like its per share earnings) is expected to grow annually at 8%. If you want to earn 12% on your funds, is this a good buy? Hint: Calculate expected price using constant growth formula.

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